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House price forecast: 1.2% rise over summer

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Deals agreed in May are predicted to feed through to strong property price growth in August, as buyers try to beat the Brexit deadline
House price forecast: 1.2% rise over summer

House prices will rise by 1.2% over the next three months, based on analysis of sale prices already agreed, according to reallymoving.

The home move services business said that average property prices rose strongly in June, by 6.5% compared to May.

It predicts that a busy May for house hunters will feed through to price rises in August when those sales have completed, based on the fact that homebuyers register for quotes on its site about 12 weeks before their purchase completes.

It forecasts that average house prices are set to remain stable in July, dipping by just 0.5%, followed by a surge of 3.2% between July and August.

Annual price movements

Annually, property values fell between January and May 2019, but this trend reversed at the start of the summer when prices increased by 2.3% in June compared to the previous 12 months.

Growth is forecast by reallymoving to remain positive, with a 0.7% annual increase forecast in July, followed by 1.2% in August and 3.8% in September.

CEO Rob Houghton said: “The spring market was more robust than expected and this has prompted positive growth through the summer, particularly for deals agreed in May which are translating to sale prices in August.

“The chance of us leaving the EU without a deal seems increasingly likely and people are realising that the window between now and the end of October may present their best opportunity to sell. The market has proved itself to be surprisingly stable over the last twelve months but this could change if we crash out of the EU on Halloween.

“A mixed picture remains regionally, but there are twice as many regions forecast to see price growth over the summer than price falls, with particularly strong performances in Wales, Scotland and Northern Ireland.”

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