House prices DROP for first time this year, says Rightmove
Published by Brian Church for 24dash.com in Housing
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The Rightmove House Price Index says asking prices in Britain have fallen for the first time this year, including in London.
The property website attributed the drop to stricter lending criteria, expected hikes in interest rate rises and even the World Cup interfering with normal activity.
Advertised prices dropped 0.8% - or £2,116 - from £272,275 in June to £270,159 in July, leading to a fall in the annual rate of growth from 7.7% to 6.5%.
The biggest drops occurred in the North and the East Midlands at 1.9% each, while house prices in Greater London dropped 0.4% this month.
However, Rightmove has upgraded its 2014 forecast so that new seller asking prices will see an 8% annual increase at year end, hitting the top end of the original forecast of 6-to-8%.
There were also "speedier sales" with the average time dropping from 75 to 65 days.
Miles Shipside, Rightmove director and housing market analyst, said: "A price fall in July is not unexpected as prospective buyers turn their attention to the summer holidays, not to mention the added distraction of an engaging World Cup.
"Buyer confidence may also have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated should the rumours of an interest rate rise before the next election come true."
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