United Kingdom house prices stabilise, but buyers still wary: Rightmove

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Monthly house prices went up 0.1% from the previous month, taking the average price of a property up to £316,421.

Nearly half of estate agency stock has been sold subject to contract so far this year, as buyer demand continues to outweigh supply, Rightmove has reported.

That's up on the average of 0.1% for Wales and England.

However in July, asking prices on a property coming to market increased by 0.6% in Wales.

Growth has returned to the United Kingdom housing market this month, but house prices have edged up just £300, new figures have shown.

The gulf between average incomes and average property prices is now wider than ever.

Prices of homes put up for sale in the United Kingdom remained just about flat last month, according to research published overnight.

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'Having said that, the historic under supply of the right property at the right price and ongoing strong housing demand are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result. The Rightmove report suggests annual average house price increases of 2.8% so far this year, which is absolutely in line with market forecasts and expectations for 2017, so again should not raise any alarm bells whatsoever.

This reversed the 0.4% dip taken by average prices last month and means average prices in July are 2.8% higher than in the same month past year.

"Wage growth is muted, there are signs that consumer credit is tightening, and at some point there will be the first rise in mortgage interest rates for a decade or more which will come as a shock to buyers who have either forgotten or have never experienced interest rates going up as well as down".

"Prices are in the summer doldrums", said Mr Shipside. Although for first-time buyers, the figure fell 1.7 per cent month-on-month, from £196,943 in June to £196,450 this month.

The number of agreed sales in June rose by 4.6% year-on-year, while the number of sellers was up by 7.6%.

"Overall, today's Rightmove report would suggest that even though we're moving into high summer which is traditionally a slower time for property sales, the market would appear to be ticking over very nicely with no apparent immediate cause for concern or negative sentiment, which it's probably reasonable to suggest might lead to a consistent picture for the foreseeable future". "High demand will continue to underpin prices, but we are seeing stretched affordability limiting the pace of rises, especially in the south of the country".

The portal, in its latest monthly index, says the shortage of stock means that "prospective buyers in many parts of the country are seeing a lot of sold boards on properties they would like to buy themselves".

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