Asking prices falling across most of the UK, latest index data shows

Asking prices in England and Wales fell further this month, down 0.3%, with overall price growth trending towards zero, and values also down in Scotland, according to the latest index figures.

Price falls across most English regions have dragged the average down and both mean and median marketing times are longer than a year ago, according to the data from the index.

Year on year asking prices are up by just 0.9%, a lot lower than the 3.5% recorded in September 2017.

The data also shows that overall, the supply of property for sale is up by 7% year on year and the total stock for sale has increased by 8.8%.

London and the South East recorded some of the largest price falls over the last month, both down 0.5% and in the South West asking prices were down by 0.7%.

The report points out that asking prices in London have been steadily falling for two and a half years and, thus far, there is no indication of or cause for a change from this slow price erosion.

The data also shows that year on year asking prices in Greater London are down by 2.3%, the biggest annual fall, and have fallen by 5.2% since their peak in May 2016.

The Northern and Western regional property markets are outperforming the rest of the country by a significant margin in terms of price growth, as is Wales, which is leading the price growth tables ahead of the West Midlands and the North West.

Regional markets in the North and West continue to indicate significant annualised gains, with Welsh asking prices up 6% and asking prices in the West Midlands up by 5.2%.

Prices rose only in Wales and Scotland, and in the North West and East Midlands since last month. All other English regions fell.

Typical Time on Market for England and Wales has risen to 90 days, three days longer than in September 2017.

‘The same pattern of supply induced slowdown combined with a pullback in demand which led to market saturation in London, the South East and the East of England now looks set to envelop the East and West Midlands,’ says the report.

‘Supply is up by 11% compared to a year ago in both these regional markets and this is making for more conservative asking prices,’ it points out.

‘Further ahead in the property cycle, the East of England continues to suffer increasing supply. Currently up 15% year on year, this over-abundance of property on the market has driven annualised price growth down to just 0.5% and raised the typical time on the market by 10 days.