Nationwide’s House Price Index (HPI) has shown house price figures across the nation dwindling after July saw a small and fleeting increase.
Data has revealed that prices have dropped by 0.1 per cent over August, following a 0.5 per cent increase in July.
Annual house price growth cooled down too, dropping to 2.1 per cent from 2.4 per cent.
Generally, the summer months are known for their ability to put the brakes on the housing market due to the school holidays and more time spent with family and friends.
Nationwide’s latest HPI showed a 0.1 per cent drop in August
|
GETTY
But experts say this is “nothing but a summer dip” and is not a long-term cause for concern.
Director of Benham and Reeves Marc von Grundherr said: “August’s marginal dip is no surprise, with the school holidays always proving disruptive for buyers and sellers.
“However, this is nothing more than a seasonal summer slump as our plans to move take a backseat in favour of holidays and longer days spent in the sun with family and friends.”
Looking ahead to more usual practices, he added: “Now that September has arrived it brings with it a greater degree of normality where our day to day routines are concerned.
LATEST DEVELOPMENTS
“We should see momentum return quickly, with greater consistency in both market activity and house price growth.”
Even more optimistic is the CEO of estate agency Yopa, Verona Frankish, who commented: “The market may have paused over the summer, but the annual picture remains one of growth and resilience.”
The businesswoman explained that attention is turning towards the festive period, particularly the “final run-up to Christmas”.
Traditionally, it is one of the busiest times of the year and “one of the hard deadlines many buyers and sellers set for their completion data”.
Christmas is generally one of the busiest times of year to sell and buy
|
GETTY
The combination of improving mortgage affordability blended with the “added motivation of moving before the festive season “should help drive a strong finish to the year for the housing market”, Ms Frankish added.
Nevertheless, swirling speculation about the possible taxes and reforms the Government will introduce in the Autumn Budget is believed to be a contributing factor to the hesitation brewing among buyers.
In fact, Rachel Reeves’ rumoured capital gains tax was blasted for “profoundly distressing older people”.
Financial services firm Hargreaves Lansdown warned that such a move by the Government could significantly impact those with valuable homes but limited liquid assets.