Asking prices in England and Wales fell by 0.3% in the 12 months to March 2019, while in Scotland they increased by 2.1%, the latest property market index shows.
Month on month asking prices increased by 0.2% in England and Wales and by 0.4% in Scotland with only the East of England seeing a fall, down by 0.1% and asking prices unchanged in London.
The data from the Home.co.uk index also shows that London and the East of England currently have the weakest markets. Asking prices in the East of England were down by 2.6% year on year to £350,180.
In London asking prices fell by 3.2% year on year to £514,815, this was a slight improvement from the fall of 3.3% recorded the previous month but asking prices in the capital have now fallen by 6.9% since May 2016.
The typical time on Market for unsold property in the East of England has risen by 46% since March 2018. In contrast to the regions undergoing price corrections such as Greater London, the South East, the South West and East of England, Northern and Western regions still show positive growth.
In the West Midlands asking prices have increased by 4.9% and they were up by 3.4% in both the North West and Yorkshire. In contrast asking prices fell by 0.3% in the South West and by 2.3% in the South East.
The West and East Midlands markets continue to slow as shown by their typical time on market increases at 15% and 14% respectively. Supply in both regions is up 4% and 8% respectively and the index report says that it expects supply and stock levels to increase further over the coming months.
Indeed, according to Doug Shephard, director at Home.co.uk, these two regions will be the next markets to weaken.
He pointed out that overall, supply of property for sale entering the UK market is down by 4%, showing increased caution on the part of vendors, while the total stock for sale has increased by a reasonably benign 6.4% year on year.
‘In March 2018, the annualised rate of increase of home prices was 2%, today the same measure is down 0.3% and continues to trend further below zero,’ he said.
He also pointed out that asking prices in the North East still show no signs of recovery, up just 0.5% over the last 12 months and, during the last 10 years, prices have actually fallen 2.6%. The Scottish property market is faring better with growth of 2.1%, although Edinburgh’s prime residential areas look set for a period of price correction, according to Shephard.
‘Whilst borrowing costs remain low and stable, buyer demand is likely to remain relatively stable. Hence, it is arguable that supply is perhaps the most important price driver in our current economic environment. Too much and prices slide, but too little and prices soar,’ he added.
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