Asking prices fall in England and Wales but still 3% higher than a year ago

Asking prices in England and Wales have fallen by 0.2% but are still 3% higher in November than they were a year ago, taking the average to £306,667, the latest index shows.

Some regions are still seeing prices rise month on month, most notably the East and West Midlands and the North West with asking values up by 0.2% in all three regions and the East and West Midlands also lead annual growth at 6.8% and 5.8% respectively.

But the index shows that in the South West asking prices are down month on month by 0.6% although still up 4.5% year on year, and down 0.9% month on month in the North East where they are up just 1.1% year on year.

The index points, therefore, to considerable regional variation. The slowdown in Greater London has also worsened with asking prices down for a fourth month in a row. But despite these regional fluctuations the index report says that the UK property market is stable as supply remains relatively tight overall.

Indeed, total stock levels remain near their 10 year lows. In November 2016 the annualised rate of increase of home prices was 3.8% but now it is 3%.

The index also shows substantial rent rises over and above the rate of inflation in the East and West Midlands and the North West, up 5.9%, 5.2% and 7.3% respectively year on year. It says that the combination of both rising home values and rents, together with decreasing marketing times, indicates that these regions will continue to outperform the average.