According to a recent report by Rightmove, a leading UK property website, the average asking price for homes in the UK has dropped by 0.6% in July. However, despite this decrease, the number of sales in July has hit a 5-year high.
The report states that the average asking price for a home in the UK is now £338,447, which is a decrease from the previous month. This is the first time in 2021 that there has been a decrease in asking prices, with the previous months showing a steady increase.
The decrease in asking prices can be attributed to the end of the stamp duty holiday, which ended on June 30th. This holiday allowed buyers to save up to £15,000 on their property purchases. With the holiday now over, buyers are facing higher costs, leading to a decrease in asking prices.
Despite this decrease, the number of sales in July has hit a 5-year high, with a 4.5% increase compared to the same period last year. This is a positive sign for the UK housing market, as it shows that there is still strong demand for properties.
The report also highlights that the number of properties coming onto the market has increased by 7.6% compared to the same period last year. This increase in supply could help to balance out the market and potentially lead to more stable prices in the future.
Tim Bannister, Rightmove’s Director of Property Data, commented on the findings, stating that “the housing market is showing signs of resilience despite the end of the stamp duty holiday.” He also noted that “the increase in supply could help to ease some of the upward pressure on prices.”
Overall, while the average asking price for homes in the UK has decreased in July, the number of sales has hit a 5-year high. This suggests that the UK housing market is still strong, and with an increase in supply, there is potential for more stable prices in the future.
