New figures show the property market is continuing to shake off post-Brexit vote uncertainty, with steep price rises hitting the first-time buyer sector hardest.
Seven out of 10 regions in England and Wales have either seen house prices rise or at least remain steady following the EU referendum in June.
New figures from Rightmove reveal average asking prices have now reached £306,499, a marginal increase of 0.7 per cent on the previous month and a rebound from the fall of two per cent recorded in July and August. Last month, price falls were recorded in eight of the 10 regions.
Miles Shipside, Rightmove director and housing market analyst says: “The market continues to shake off the effect of post-Brexit vote uncertainty, though more so in the lower end sector.”
First-time buyers have already faced price rises following April’s stamp duy increases and a surge in buy-to-let sales.
In September, average asking prices are up by a further 3.3 per cent (£6,240), taking the average asking price of a starter home outside of central London to almost £195,000, which is £20,000 more than a year ago. In the capital, first-timers now face eye-watering entry level prices of more than £477,000.
While Help to Buy has encouraged a greater supply of more starter homes, this is the sector that has historically had the greatest demand and therefore requires the greatest supply.
Shipside adds: “The market continues to shake off the effect of post-Brexit vote uncertainty, though more so in the lower end sector. Buyers are still looking and enquiring, but there are limits on their willingness or ability to pay over the odds so sellers should be wary of over-pricing unless their local market can really justify it.”