House prices continue to go through the roof

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The price edged up by 0.3 percent in June, or £1,113 month on month. But Rightmove echoed other property professionals by reporting that growth is cooling.

Buyer demand remains strong despite a string of base rate interest rises and the rocketing cost of living.

However, the website forecasts that it is likely affordability constraints will have a greater influence on market behaviour in the months ahead.

This, alongside more choice coming on to the market and the usual seasonal variations, points to easing in monthly increases during the second half of the year.

Tim Bannister, Rightmove’s director of property science, said: “We anticipate further slowdown in the pace of price rises, particularly given the worsening affordability challenges people face.”

“We expect this to bring the annual rate of price growth down from the current 9.7 percent towards a five per cent increase.”

The group said it currently takes around 150 days to complete a purchase after agreeing a sale – 50 days longer than in 2019.

There are 500,000-plus homes at present sold subject to contract – 44 percent higher than three years ago and 39 percent higher than the pre-pandemic five-year average.

Oliver Gill, from Kirkham Property at Oldham in Greater Manchester, said: “The market is still performing well but we have noticed a slowdown.”

This could be due to more properties coming to market and the imbalance between high buyer numbers and low stock correcting itself.”

Forecasting group EY ITEM Club expects UK house prices to rise eight percent during 2022, followed by growth of 1.8 percent next year and 1.2 percent in 2024.

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