Property prices rise in England and Wales as supply falls 5.3%

Property prices rise in England and Wales as supply falls 5.3%

Market momentum continues to see property prices rise, with the average property worth over £2,000 more than in May 2016.

Summary:

  • Property prices across England and Wales have increased by an average of 0.8% in June, but fallen by 0.2% in Greater London
  • There have been property price rises every month so far in 2016
  • Supply continues to fall below demand, with new properties coming on the market down by 5.3% year-on-year

Asking prices in England and Wales have reached a record high, the latest index report shows.

Housing market momentum continues to push up the price of property coming on to the market with a rise of 0.8%, or £2,320, to a new high of £310,471, according to the June report from property portal Rightmove. In Greater London price growth is slowing with a month on month fall of 0.2%.

The increasing desire to buy and continued lack of supply is affecting the market, with the time to sell falling to 57 days, the fastest ever measured by Rightmove, down from 60 the previous month. In June last year the average time to sell was 65 days.

With fewer new sellers coming to market, new properties for sale were down 5.3% compared to the average at this time of year.

Overall, there have been price rises every month so far in 2016, showing that the uncertainty associated with the EU referendum has failed to halt this year’s upwards price momentum.

Miles Shipside, Rightmove Director and Housing Market Analyst, said: “Most seem to be getting on with the certainties they can control, namely if you find a suitable property snap it up. Indeed, the figures for average time to sell indicate that properties are being snapped up more quickly than ever.”

In many parts of the country, the overriding factor of supply outstripping demand has overcome buyers’ usual reluctance to make major financial decisions at times of political uncertainty.

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