"At £91 below June 2018’s figure of £309,439, it’s within touching distance of the previous high."
Four northern regions - the East Midlands, the North West, Wales and Yorkshire & the Humber - saw their highest ever prices, pushing the national average price of property coming to market to within £91 of a new record.
These regions are also outperforming the national average in the number of properties coming to market and the levels of sales agreed so far in 2019.
At the mid-point of 2019 new seller supply remains constrained nationally, down by an average of 5.0% versus the same period in 2018.
This regional pattern is also evident in the number of sales being agreed. The more marked reluctance of would-be sellers in the south to come to market means less property choice for buyers and fewer sales agreed in those regions. Despite this, the national average for the number of sales agreed in the first half of the year is down by only 4.3% on the same period last year.
The regions which have set new price records are again all selling better than the national average, with Wales 0.2% ahead of last year, Yorkshire & the Humber down by 1.9%, the North West dropping off by 3.3%, and the East Midlands down by 3.7%.
Miles Shipside, Rightmove director and housing market analyst, commented: “With the country supposedly consumed by the twists and turns of Brexit, it’s surprising that the price of property coming to market is within a whisker of setting a new record. At £91 below June 2018’s figure of £309,439, it’s within touching distance of the previous high. More buoyant markets in the north and midlands are helping to nudge up prices due to the seemingly relentless strength of buyer demand.
“The national market faces a range of challenges, with overall average asking prices barely changed from last year, and activity levels slightly lower. Some buyers are hesitant due to the long-drawn-out uncertainty of Brexit, and there is also a slight tightening of mortgage availability and stretched buyer affordability, especially when it comes to raising a deposit.
“There is however a marked north/south divide as all northern regions are selling better than those in the southern part of the UK. On average the number of sales agreed for the year to date in the northern regions is down by 1.7% compared to the same period last year, while success at selling is more elusive in the southern regions which are down by an average of 7.1%. To sell in these more difficult locations you have to undercut the asking prices of similar properties, and preferably have a well-finished and expertly marketed home that will all combine to stir hesitant buyer interest.”
Brian Murphy, head of lending at Mortgage Advice Bureau, added: "Localised infrastructure and economic factors in the East Midlands, Wales, North West and Yorkshire have been driving the market in these areas for some months now. However, their stellar performance is now markedly different to other regions where asking prices are more circumspect due to lack of confidence and buyer demand.
“Given that London and the South East continue to see more challenging environments, the fact that Rightmove reports the total number of sales agreed for the first half of this year as only being 4.3% below the same period last year is potentially reassuring. This also supports other data sources which suggest that the market remains resilient overall, although clearly divergent in terms of buyer and seller confidence across the regions.
“Ultimately though, the complex current market dynamic is driven by varying levels of consumer sentiment, and one might suggest that those areas which are seeing more ambitious asking prices are somewhat insulated from the ongoing turbulence at Westminster – that or buyers and sellers in those areas are opting to ignore the headlines and carry on regardless, according to their personal circumstances.”
