June UK asking prices fall for the first time since 2009

Asking prices in the UK property market have fallen for the first time in eight years, according to new data, which shows a surprising early summer dip in the confidence people have in the sector.

According to the figures published this week by property portal Rightmove, over the course of the month between May and June, the average asking price in the UK fell by £1,172. This represented a month-on-month decline of 0.4 per cent.

Given that June normally represents the start of the summer rush for property purchasing, this is a surprising decline at this time of year. It represents the first time in 2017 that asking prices have dropped on a monthly basis, as well as being the first June since 2009 in which sellers have lowered their expectations compared to May.

Miles Shipside, Rightmove director and housing market analyst, said that the fall in asking prices shows how people are feeling about the market at the moment. Whenever there is a period of political uncertainty, buyers and sellers alike tend to wait and see how things play out, which can mean less competition in the market. By extension, this means prices usually stutter a little.

This is something that Rightmove expects to see continue in the market for some time to come.

“It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor,” said Mr Shipside.

However, the market, he added, still has that underlying health at present that should help it recover in the long run. Demand remains intact in the property sector even though there is uncertainty, so when things are more settled, it should mean a return to health for UK property.

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