House prices are set to rise by 7.1% in England and Wales over the next three months to the end of August, the latest forecast from Reallymoving predicts.
But there are early signs that the market could be heading towards a slowdown when the summer is over, according to the website.
Reallymoving captures the purchase price home buyers are planning to pay when they search for conveyancing quotes and other moving-related services on its comparison platform.
Buyers typically search for quotes three months before their purchase completes, which provides an indicator of house price trends over the months ahead.
Analysis of this data suggests that average prices will reach £330,081 by the end of August, which would be an increase of 11.1% on the same time last year.
Looking at month-on-month trends, May saw prices drop by 6.4% as the impact of the government’s original plan to end the stamp duty holiday in March dragged down the market and prompted a short-term lull.
This was quickly reversed when the chancellor announced the tax break would continue until June 30, before being phased out completely at the end of September.
Prices are currently on track to increase by 2.9% in June and 3.8% in July, before growth slows to 0.4% in August, according to Reallymoving’s predictions.
Conveyancing quote volumes on Reallymoving peaked in March at more than double the usual level and remained high in April, but dropped by 10% in May, which suggests that buyer demand is beginning to wane.
Estate agents and surveyors have been reported that the lack of available properties coming to market is hindering activity.
Reallymoving chief executive Rob Houghton says: “This significant period of growth for the housing market may be showing signs of slowing in pace which will be reflected in completed sale prices in August.
“While demand may be reducing, there’s still a huge volume of activity in the market which is driven predominantly by lifestyle factors as well as tax savings.
“Money is cheap to borrow, workers are enjoying greater freedoms than ever before to live where they choose and with fewer demands on cash savings from holidays and leisure activities, many people remain determined to move and achieve a lifestyle that may previously have been impossible.”
