DON’T POP THE CHAMPAGNE YET

GRASSMONSTER SAYS:

HOUSE PRICES DIP – BUT DON’T POP THE CHAMPAGNE YET

In news that might raise an eyebrow but not a mortgage approval, UK house prices took a wobble in June – the biggest monthly fall for that month since 2011, according to Rightmove. But before renters crack open a bottle of Aldi prosecco in celebration, let’s be clear – this is more of a shiver than a landslide.

The average asking price of a home dropped £1,524 in a month, which, in most parts of the UK, barely covers the legal fees of a disappointed gazumper. It’s a fall, yes – but compared to the Everest-level peaks of pandemic-fuelled house inflation, it’s still a long way down.

What’s driving it? Well, the usual culprits. High interest rates, nervous buyers, cost-of-living pressures, and the ever-present sense that you might be buying at the wrong time. The Bank of England hasn’t yet eased up on borrowing costs, and that’s put the chill into many a young couple’s Rightmove wishlist.

Add to that the recent stamp duty recalibrations, which have made purchasing pricier in some brackets, and you’ve got a recipe for a cautious market. Halifax chimed in with its own data showing a 0.4% drop in May, confirming the trend – but not screaming a collapse.

Estate agents are now doing the dance of optimistic doom. “Prices are softening, but demand is strong!” they say, smiling like someone trying to sell a parachute in a submarine. Meanwhile, buyers are hoping for a crash, sellers are hoping for denial, and everyone else is just hoping their fixed rate holds.

In simple terms: house prices are not collapsing, but the party is definitely over. The DJ has packed up, the lights are on, and someone’s nicked the prosecco.

Still, for first-time buyers with nerves of steel and a calculator glued to their hand, this could be the start of something slightly more realistic.

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Author: @grassmonster