Rightmove’s latest house price index revealed average asking prices fell 0.4 per cent between May 14 and June 10, even though there was a rise of 1.2 per cent the previous month.
Founder and CEO of eMoov.co.uk, Russel Quirk has suggested uncertainty in the run-up to the General Election may be to blame.
“Anyone that claims the political landscape has no direct impact on the UK housing market need only to look at the latest index from Rightmove to be told otherwise.
“Yes, the portals data may not provide the most concrete view of how the sector is performing due to the figures being based on asking price rather than completions, but it certainly gives us a flavour of the current buyer-seller market seesaw.
“With the snap election in June, it is no wonder price momentum stalled as both buyer and seller alike held off until some greater stability for the nation was decided. Unfortunately, stability was the last thing we received at the start of the month and so not only will this period of uncertainty now be prolonged, but it is likely the market will continue to splutter where price growth is concerned.
“That said, it is probably unfair to be drawing comparisons to the market during the peak of the credit crunch as we are in a much steadier climate then compared to now. Although price growth is likely to remain stagnant for the rest of the year, it is unlikely that we will see any notable dips, perhaps a marginal adjustment if any.”
Although the new data shows a minor decrease in monthly house price growth, Director of Legal & General Mortgage Club Jeremy Duncombe said on a year-on-year basis, house prices are still rising.
He said: “Potential buyers are having to increase their borrowings, or depend on family members to help fund a deposit.
“For many workers, price increases are occurring at an unattainable rate, with house prices now at a record 7.6 times earnings. For London, this is stretched to more than 10 times.
“Once the dust has settled in the…