First Falls in Prices Confirmed

Monday, June 21 2004

Rightmove’s June report has indicated the first fall in house prices this year. The property website found that the price of the average house continued to rise throughout May but fell by 0.4% in the first week of June.

However it also reports an overall rise of 2.6% in asking prices for the past month, putting their annual house price inflation rate at 17.2%, up from 15.6%.

The falls occurred in five regions including Greater London (down 1.6%) and the South East (down 0.7%). Other parts of the country were also affected with Wales down 1.3% and the prices in the north west falling 0.3%.

The report does point out that one week of price falls does not constitute a definite trend, but the does concede the possibility that four interest rate rises in a row may finally be taking their toll.

A spokesperson for Rightmove said: ‘The average number of homes for sale per estate agent office has steadily grown since the New Year, with stock levels now standing at around 10% more than in January.

‘This gradual increase in stock levels, partly underpinned by rises in borrowing costs and affordability constraints at current prices, is contributing to an orderly slowdown in the market.’