Asking prices in England and Wales fell by 0.6% in the 12 months to June 2019 to £308,409, while in Scotland the market is stronger with an annual rise of 1.4% to £187,746, the latest index shows.
The data from Home.co.uk also shows that month on month prices in England and Wales increased by 0.3% and in Scotland by 0.7% but overall the market is trending downward.
In London the annual price fall is even greater at 2.6% to an average of £517,011 and month on month they fell by 0.3%.
In the South East prices fell by 2.4% year on year to £395,171 and were unchanged month on month. Prices also fell in South West, down by 1.5% on an annual basis but were up 0.5% on a monthly basis to £323,852 and by 3.6% in the East of England year on year to £351,672 and unchanged month on month.
It appears that it is the southern half of England and London that are dragging down the national average as prices in Wales were up by 5% year on year to £210,391 and increased by 0.6% month on month. The West Midlands also saw a strong annual rise of 4% to £255,087 and prices were up 0.9% month on month.
In Yorkshire and the Humber prices increased 3% year on year and 0.2% month on month to an average of £201,261 while in the East Midlands they were up 2.6% and 0.2% respectively to £237,922.
Prices have also been strong in the North East and the North West. In the North East they increased by 0.9% on an annual basis and 0.5% on a monthly basis to £159,483 while in the North West they were up by 2.5% and 0.5% to £206,650.
But the London market could be showing signs of recovering with the annual fall in asking prices better than the decline of 2.9% recorded in the previous month and they are 6.5% lower than their peak in May 2016.
But homes are staying longer on the market before being sold, with the typical time on the market up by 17% in Greater London. The typical time on the market was also up by 17% in the South East, up 18% in the South West and up 19% in the East of England year on year.
Total stock levels across England and Wales remained stable. The largest regional supply increases were 105 in the West and East Midlands. But supply was down 15% in London.
‘Sellers in London are clearly much less enthusiastic about the market than they were 12 months ago but that should come as no surprise. Worst affected by the slowdown is central London where the time on market for unsold property has soared by 33% over the last year, taking the average to 322 days,’ said Doug Shephard, director of Home.co.uk.
‘Deterred by such market conditions, many potential vendors have chosen not to sell and, consequently, stock levels have fallen by 20% over the same period, which has helped to stabilise prices despite lower demand,’ he explained.
The total number of properties for sale has fallen 19% over the last 12 months. In short, supply and demand have both readjusted and prices appear to be showing renewed stability, with this month’s modest rise of 0.3% being the fourth such consecutive increase. This combination of positive trends in the key metrics paves the way for a rapid recovery when pent-up demand returns to the marketplace. This may occur as soon as spring 2020,’ he added.
