Prices dip but forecast strengthens: Rightmove

Rightmove is looking both ways over property values.

Its index of asking prices in July has shown the first fall of the year yet the portal believes price rises by the end of 2014 will be higher than expected, at an average of eight per cent.

Asking prices have fallen in the past month by 0.8 per cent, or an average of £2,116 it says.

A fall in July is not unexpected as prospective buyers turn their attention to the summer holidays. Buyer confidence may also have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated should the rumours of an interest rate rise before the next election come true according to Rightmove housing analyst Miles Shipside.

The portal also reports speedier sales - the average time to sell has fallen to 65 days from 75 in same period last year. And the ripple effect is spreading, especially in southern regions, which have performed more strongly in terms of asking prices than areas further from the capital.

Yet despite this month's dip in asking prices, Rightmove has upgraded its 2014 forecast. What it calls new seller asking prices' will now see an eight per cent annual increase despite MMR and occasional gloomy forecasts from Bank of England governor Mark Carney, according to Shipside.

Market conditions still compare favourably with this time last year, with growth in both the economy and employment. The year to move' window looks likely to be open for a while longer yet, though we expect market activity will slow down in the run-up to the election in May next year he says.

Estate agents appear to agree. Rightmove cites several backing the portal's prediction on price rises.

Mark Manning of Manning Stainton in Yorkshire says that during the first half of the year instructions were up by around seven per cent in our area, but sold volumes increased by 25 per cent, creating an imbalance in supply and demand. Mortgage Market Review has meant that on average sales are taking around three to four weeks longer to go through.

Daren Haysom, a Foxtons rirector in east London, says: We're still experiencing quick sales times though and it's not uncommon to see great properties going under offer within a day or two of coming to the market. Following annual trends in the market though we expect to see a full return in strength, from September onwards.