© Reuters. FILE PHOTO: A real estate agent’s board is displayed outside a house on a terraced street in Blackburn, England, January 17, 2022. Photo taken on January 17, 2022.Reuters/Phil Noble
LONDON (Reuters) – Real estate website Rightmove (OTC: ) said on Monday.
Rightmove said asking prices for homes sold between May 15 and June 11 were 0.3 percent higher than a month earlier, down from 2.1 percent in May’s data.
Asking prices rose 9.7% from a year earlier, down from the 10.2% gain recorded in May.
“The unusual pace of the market is slowing as demand gradually normalizes and price increases begin to moderate, which is very much to look forward to given the many record-breaking numbers over the past two years,” Rightmove director Tim Bannister said. Tim Bannister) said.
Rightmove expects price increases to slow further this year, rising 5% annually.
Earlier this month, Bank of England deputy governor Jon Cunliffe said the housing market appeared to be slowing, reflecting broader weakness, as the public faced the highest consumer price inflation in 40 years.
The Bank of England has raised interest rates five times since December to 1.25%, and financial markets expect it to reach 3% by the end of the year.
After the initial outbreak of the COVID-19 pandemic, house prices soared in the UK and many other Western countries, as many wealthier households had excess disposable income and sought more spacious housing to work from home.
Other house price indicators from Nationwide Building Society and Halifax also pulled back from recent highs, although year-on-year price growth remained strong.
Rightmove said the number of potential buyers per home for sale is still more than double its pre-pandemic level — 6% higher than a year ago — but down 8% over the past month.
In a sign of bottlenecks affecting many areas of the UK economy, Rightmove said the legal transfer process to buy a home now takes an average of five months, 50% longer than in 2019.