House price to drop by 1.3% in the next three months

Average house prices are expected to dip by 1.3% over the next three months as a lack of consumer confidence takes its toll, reallymoving research predicts.

It expects prices in Northern Ireland to drop by 8.5% to £163,969, in Wales by 8.4% to £177,205 and in the North West by 5.1% to £186,011, wiping out increases made in recent months.

The regions set for price rises are the East of England (1.9%), the North East (3.1%) and the West Midlands (4.1%).

Rob Houghton, chief executive of reallymoving, said: “Most regions of the UK are set to see prices dip over the final quarter of the year which is partly down to seasonality as the market follows its usual pattern of peaking in the late summer/early autumn and then tailing off steadily towards the end of the year.

“It’s fair to say 2019 was never going to be a stellar year for the housing market but despite consumer confidence taking a battering, house prices in England and Wales are on course to end the year 4% higher than at the end of 2018, which supports our belief that the underlying value of property remains fundamentally stable.

“The political situation now is as uncertain as ever with a general election just a few weeks away, but the figures indicate that the market will continue bumping along in much the same manner as we head into the new decade.”

Homebuyers register for quotes for home move services on the site typically 12 weeks before their purchase completes, which reallymoving said allows it to forecast prices three months ahead.

Annually, house prices have performed better than expected throughout 2019, with 4.8% annual growth in October and November, the highest level seen since March 2016.

Average house prices will end the year at £299,705 in December 2019, compared with £287,901 12 months previously.