Prices fall by 0.2% as uncertainty ramps up pressure on the market in the run up to the Brexit deadline
The average price for newly marketed properties has fallen for the first time during this part of the year since 2010, the latest House Price Index by Rightmove reveals.
Between August and September, asking prices for homes new to market declined by 0.2% or £730, whilst on an annual basis prices are up by just 0.2% compared with September 2018.
Despite being notably lower than August’s monthly decline of 1%, the index highlights that this is the first price fall for the month of September in 9 years.
This is significant as September is often the period in which housing market activity starts to rebound at the beginning of Autumn.
Prices in over half of the regions declined, led by a 2.2% drop in London, whilst the South West saw asking prices lift by 1.1%, followed by a gain of 0.8% in the East Midlands.
Rightmove suggests that whilst underlying market indicators remain strong, it is the ongoing political uncertainty that is having an impact on prices, noting that sales agreed numbers have sharply reversed from last month’s 6.1% increase to a 5.5% national decline.
In addition, fewer new properties are being listed on the market, with the number of newly-marketed homes down by 7.8% over the last year, heavily influenced by a substantial 20% drop in London.
Commenting on this month’s figures, Rightmove’s Director Miles Shipside said: “Many have got used to living in the jaws of uncertainty since the referendum over three years ago, and have been getting on with their lives and housing moves.
“However, as we approach yet another Brexit deadline, there are signs that the increasing gnashing of teeth is causing some to hesitate.”
Accounting organisation KPMG has claimed that house prices could either rise by 1.3% or fall by 6.2% next year depending on the outcome of Brexit.