According to the data, new seller asking prices are now almost £20,000 (+10.5%) higher than a year ago in this sector.
The first-time buyer property sector had already seen significant upwards price pressure this year due to a surge in buy-to-let sales before April’s additional stamp duty on second homes, and a subsequent shortage of available stock for first-timers in May.
In contrast, second-stepper properties with three or four bedrooms (excluding four-bedroom detached), has increased by just 0.5% this month and a much more modest 5.2% year-on-year. The upper end ‘top of the ladder’ sector with four bedrooms or more is up by 1.2% this month and just 2.7% in the last 12 months.
Overall, seven out of 10 regions have seen price rises or standstills this month, compared with eight falls last month.
Miles Shipside, Rightmove director and housing market analyst, commented: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain. While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.
The rising tide of prices is marooning more and more first-time buyers, out-stripping their ability to meet stricter lending criteria and afford the required deposits and monthly repayments. Increasing numbers are being cut off from home-ownership altogether and while schemes are in place to help, the additional demand they create is not matched by available and affordable supply.
With an average rise of over 10% in prices of typical first-time buyer properties over the last 12 months, minimum entry prices in some locations will go above what lenders are able to lend to most aspiring first-time buyers. Ironically the post-referendum uncertainty has made some sellers of larger and higher value homes more willing to negotiate, making it easier for those already on the ladder to trade up. There appear to be no such positives at present for those hoping to get onto the property ladder, especially as agents report more investor activity attracted by better returns than available elsewhere.”
Brian Murphy, Head of Lending at Mortgage Advice Bureau, added: "Of course, it’s still too early to tell if the tide has turned and we’re in for a busy Autumn market, but the Rightmove data provides us with a cautiously optimistic picture that the market is stabilising. For those looking to get on the ladder or trade up, whilst prices have increased, there are a number of record low product rates available at the moment with lenders very much ‘open for business’ and many repricing downwards or offering more flexible lending criteria in an effort to win new customers.”
