Indeed, the monthly decline is in line with the 1.2% average drop over the last six years at this seasonally subdued time of year and the Rightmove report points out that it is usual for sellers in the summer holiday season to price more cheaply.
The monthly fall took the average asking price to £304,222 and prices are still up by 4.1% year in year, the data also shows.
A breakdown of the figures shows that while first time buyers are paying 0.5% less month on month at an average of £188,237, it is the top end of the market that has seen asking prices fall the most, down 2.9% month on month to £538,755.
The report also points out that larger homes are taking longest time to sell while the number of days to sell increased the most in London and South East in the last two months.
It suggests that 2016 on course to be a year of two halves with activity skewed in the first half of year with the buy to let surge boosting property transactions to 12% higher than 2015 but the outcome of the second half of 2016 hangs on the strength of the traditional autumn market rebound
How different the two halves will be depends on the strength of the traditional market rebound this autumn, especially at the upper end of the market and within the London commuter belt, which currently appear to be the most subdued, according to Miles Shipside, Rightmove director and housing market analyst.
‘Many prospective buyers take a summer break from home hunting, and those who come to market at this quieter time of year tend to price more aggressively. This summer is also affected by both Brexit uncertainty and the aftermath of the buy to let rush in March to beat the stamp duty deadline,’ he said.
‘The average fall in new seller asking prices at this time of year has been 1.2% over the last six years, so this month’s fall is exactly in line with the long term average. The largest price falls at this time of year were 2% and 1.3% in 2014 and 2010, with the smallest fall being 0.8% after the general election in 2015,’ he pointed out.
Shipside explained that the sector that would benefit most from an autumn pick-up is made up of larger homes with four bedrooms or more. They are taking the longest time to sell, with an average of 74 days from being advertised on Rightmove to being marked as sold subject to contract by estate agents.
This ‘top of the ladder’ sector is also suffering the largest drop in new seller asking prices this month, with a fall of 2.9%. First time buyer homes, usually two bedrooms or fewer, and second stepper type properties which are typically three bedrooms, are performing the best, with an average time to sell of 58 days and price drops of 0.5% and 0.4% respectively.
The southern regions, on average more highly priced than other parts of the country and more influenced by the dynamics of the London market, have had the biggest jump in the number of days to sell in the last two months. Some agents, especially in London and its commuter belt, report that the summer slowdown has unfortunately followed on seamlessly from May and June’s Brexit uncertainty.
Time to sell in London has increased by five days between May and July, South East and the South West are up by four days, while the East of England region is up by three. While the average number of days it takes to sell a property is still longer in the north, all of the northern regions have seen either no change or just a day plus or minus over the same period.
‘It will be welcome news for some northerners that the traditional north/south divide may be taking a rare turn in their favour. London has seen its price boom curtailed by punitive stamp duty and over stretched affordability and has been in re-adjustment for a year or more, mostly affecting inner London,’ said Shipside.
‘At this time of year interest from buyers of more expensive properties that typify much of London and its commuter belt tends to tail off more, as they are often discretionary movers. Having waited for the referendum result, it now seems that some are also waiting until the summer holidays are over before reviewing their course of action,’ he added.
Shipside believes that there is pent-up demand with potential buyers still enquiring in very large numbers though obviously more muted compared to 2015’s post-election highs. ‘While the summer sales slowdown has come early in some locations with the run-up to the referendum subduing activity in May and June, there are still hundreds of thousands of buyer enquiries every week,’ he said.
‘Buyers can often get a better deal at this time of year if estate agents match them up with motivated sellers. By autumn we should get a clearer view of the strength of any post-referendum hangover, though that also depends on buyers’ confidence to turn this interest into action. The latest interest rate cut making already cheap to borrow money even cheaper should act as an added boost to confidence,’ he concluded.
