Asking prices fall nationally in England and Wales or first time since 2011
Average asking prices in England and Wales fell by 0.2% in the 12 months to February 2019, the first fall on the national figure for over seven years, according to the latest index data.
It takes the average asking price to £304,671, the figures from the Home.co.uk index shows and it is the first fall after 87 months of positive growth. But the market was more positive in Scotland, up 1.8% year on year and 0.5% month on month to £184,597.
But asking prices are up in most regions and Wales on an annual basis with a year on year fall of 3.3% in Greater London and a fall of 2.5% in the South East dragging down the national figure.
Month on month asking prices also fell in Greater London and the South East down 0.3% to £514,812 and down 0.5% to £390,974 respectively, the data also shows.
Asking prices also fell in the East of England, down by 1.8% year on year and by 0.3% month on month to £350,560 and in the South West they fell by 0.5% on an annual basis and 0.6% on a monthly basis to £318,488.
The biggest annual increase was in Wales where asking prices increased by 6.4% year on year and 1% month on month to an average of £205,768, followed by a rise of 5% year on year on the West Midlands where they also increased month on month by 0.2% to £250,415.
There was also strong growth in the North West and Yorkshire and Humberside. In the North West asking prices increased by 4.3% year on year and 0.1% month on month to £203,325 while in Yorkshire and Humberside they were up 3.4% on an annual basis to £195,970, but flat month on month.
The market was more or less flat in the North East of England with average asking prices up marginally by 0.3% year on year and up by just 0.2% month on month to £157,397.
The index also shows that the typical time on the market continues to fall in some areas, up by 19% year on year in the East of England and the South East, up 16% in London and in the South West of England.
The largest increases in supply were a rise of 13% in Scotland and the East Midlands and a rise of 10% in the West Midlands and the index also shows that 3% more properties were reduced in price whilst on the market compared to January 2018.
Doug Shephard, director at Home.co.uk, pointed out that the market in the West and East Midlands is slowing as shown by their typical time on the market which is increasing, up 10% and 13% respectively.
‘We expect this to increase further over the coming months as investors attempt to cash out at the top. This would suggest these two regions will be the next to fall and this would be consistent with market behaviour observed previously when the East and South East markets peaked,’ he said.
Shephard believes that the market is also slowing in Scotland. ‘A slowdown that began in Edinburgh’s prime residential areas, where stock is piling up on the market, is now spreading. Glasgow is relatively unaffected so far but this could soon change,’ he explained.
He also pointed out that while overall, supply of property for sale in the UK is up by 4% year on year and the total stock for sale has increased by 10.1% the fall in the national asking price into negative territory is stark as it was a rise of 2.3% a year ago.