The impending EU referendum has failed to dampen valuations, with new asking prices hitting record highs, while the number of property listings has dropped by just over 5%, reports Rightmove.
The latest House Price Index shows that the average price of property coming onto the market over the past month reached a new high of £310,471, up by 0.8% on April and over £100,000 above the £209,000 that the Government’s new index reported.
Asking Prices Hit Record High as Listings Drop, Reports Rightmove
The latest rise in asking prices contrasts to the figures reported in the run-up to the May 2015 general election, when uncertainty caused a price decline of 0.1% over the month.
Despite prices rising, fewer new vendors are coming to the market, with this month’s new listings now 5.3% below the monthly average for this time of year. The most reluctant sellers are those with larger homes – four bedrooms or more – with 6.6% fewer vendors.
However, homes are now selling faster, with the average number of days to sell at 57 in May, down from 60 in the previous month. This time last year, it was at 65 days.
The index also reports that the average price for first time buyers and second steppers rose by 8% annually, while they were up by 3.3% at the top of the housing ladder.
On a monthly basis, first time buyer prices dropped by 2.4%, while they were up by 1.8% for second steppers and 0.7% at the top of the ladder.
The Director and Housing Market Analyst at Rightmove, Miles Shipside, comments: “If you’re debating whether to trade up and make a big financial commitment, you naturally might hesitate before putting your property on the market just a few weeks before you know the vote outcome.
“With mere days to go, the number of new listings is still about 95% of the norm for this time of year, so the drop-off is relatively small in spite of what many are calling the biggest vote of our generation.
“This could mean that people are struggling to assess what the impacts might be, or are choosing to ignore them until they become more apparent.”
He explains: “A vote to remain should mean that the housing market quickly returns to its previous norm, but a vote to leave would create political and economic uncertainty, which historically has had more serious repercussions.”
Yesterday, Rightmove’s rival portal, Zoopla, warned that a vote to leave the EU would cause house prices to drop by 20%.