Asking prices increased strongly in some parts of the UK in year to July
Asking prices in the year to July 2018 increased strongly in some parts of the UK, most notably in the North and West of England, the Midlands and Wales, the latest index shows.
The biggest annual growth in asking prices was in Wales at 6.4%, taking the average to £202,378, followed by a rise of 5.4% in the West Midlands to £247,925, a rise of 5.3% in Yorkshire and the Humber to £196,907 and a rise of 5.1% in the North West to £202,248.
There was also strong annual growth of 4.7% in the East Midlands to an average of £233,291 but elsewhere asking prices fell or was muted, the data from the Home.co.uk index shows.
In the South West asking prices rose by 2.2% to £328,659, while in the East of England they were up 1.4% to £363,823, up 0.4% in the North East to £157,872 and up 0.3% in Scotland to £184,199.
Asking prices fell by 0.4% year on year in the South East to £404,120 and in Greater London by 2.7% to £529,578. Both these regions also saw asking prices fall on a month on month basis, down 0.2% in both.
Month on month asking prices also fell by 0.6% in Scotland, by 0.3% in the East of England and by 0.1% in the North East and were flat in the South West.
The index also shows that the number of properties on the market continues to grow with overall supply of property for sale up by 10% year on year. The biggest rise was 18% in the South East and 21% in the South West.
However, the total number of properties having their price reduced whilst on the market is at its highest level since October 2012 and the typical time on the market continues to rise in some areas, most notably up 13% in the East of England, up 12% in London and up 8% in the South East.
According to Doug Shephard, director of Home.co.uk, oversupply in Greater London is taking its toll on prices. ‘Since the peak, the typical asking price has dropped some 11%. That’s the equivalent of a reduction of £80,000 in market value of a typical property since January 2016. For some, that will mean negative equity is now an unpleasant reality,’ he warned.
He also pointed out that there is a lack of homes to rent in London with supply down by 23% over the last 12 months and this could lead to some significant rent rises over the next two years as tenants compete to secure a home in the capital.
‘In the meantime, investors are busy adding to their portfolios in northern English towns and in Wales, and they will continue to do so until yields become less attractive due to rising prices and possible oversupply of rental accommodation as occurred in London in 2013, which made rents dip markedly,’ he added.