Agreed prices falling says Your Move

Your Move’s index of agreed prices fell by 0.97% on average in June to £183,017 from £184,619 in May.

However, more sellers were able to attain their asking price in June, as agreed prices as a percentage of asking prices, rose to 91.74% compared to 90.31% in May.

Your Move has forecast the Land Registry index of the average UK property will rise 1.43% in June, but says the increase in July’s index is set to be much smaller as the housing market slows down.

David Newnes, managing director of Your Move, says: “Our model forecasts that the house prices reported by the Land registry will have a good June.

“June looks like a fillip – are we seeing the last of significant monthly rises in house prices?

“The July figures are fresh evidence suggesting the froth is coming off the market with price rises starting to cool.

“Your Move’s own management data shows that agreed prices are falling this month.”

He says this is mainly the result of affordability being stretched and confidence falling as a result of interest rate rises since August 2006.

Also ongoing rumours about what form the introduction of Home Information Packs will ultimately take has further dented confidence.

Newnes adds: “These two factors coupled with a traditional seasonal market slow down over the coming summer months means no one should be surprised if house price growth is slower, something those contemplating entering the housing market over the next 12 months could well welcome.”