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‘Remarkable’ nine per cent house price rise expected over summer – Reallymoving

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  • 10/06/2019
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‘Remarkable’ nine per cent house price rise expected over summer – Reallymoving
Average UK property prices are expected to rise by nine per cent in the three months between May and August 2019, hitting £299,300, according to Reallymoving’s inaugural House Price Forecast.

 

It noted the “remarkable upturn” projected for completed sales values was based on prices agreed during the spring.

House prices are expected to increase by six per cent between May and June, followed by a rise of three per cent in August, it said.

Reallymoving’s index is based on conveyancing quote forms completed as soon as a deal is agreed and which are then typically completed around three months later.

The conveyancing quote provider said that historically its data closely tracked that of Land Registry Price Paid data, which is published after sales complete.

It noted that average UK property prices fell steadily between January and April 2019 as Brexit uncertainty gripped the market, held-back consumer confidence and curtailed transaction levels.

The latest figures revealed that over the past 12 months prices have dropped by six per cent, although average prices remained steady in May compared to the previous month, standing at £274,439.

 

Regional overview

Of the twelve regions of the UK, eleven are forecast to see prices rise during the three months to August.

The strongest gains are expected in the North East, standing at 20 per cent, as well as in the East of England and the South West, at 12 per cent.

London is still forecast to see prices rise by three per cent over the summer period, although growth is more subdued than in other parts of the country.

Meanwhile, Scotland is the only region of the UK expected to see property price falls, with a three per cent drop anticipated between May and August.

 

Sellers to press ahead with their move

Rob Houghton, CEO of Reallymoving, said prices agreed this spring will show in Land Registry data in the summer, but customers registering for home move services as soon as their deal is agreed were giving an insight into what lay ahead for the housing market.

“Our forecasts suggest that sellers are growing tired of the wait and see approach and once the Brexit deadline passed at the end of March, with no further clarification, sellers decided to press ahead with their move,” he said.

“This new buyer demand and a continued shortage of quality housing stock is on course to drive strong price growth between May and August, with particular surges in regions benefiting from strong demand such as the North East and the South West, where affordability remains attractive and wages are rising.

“There is considerable pent up demand in the market following three years of uncertainty and with many doubting that Brexit will be resolved any time soon, people are increasingly making the decision to move on regardless.”

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