House prices fall across several UK regions

Britain’s housing market has been hit hard by reduced buyer activity, with prices falling across a number of UK regions.

Figures from property analyst Hometrack show that property values across the UK have fallen by 0.1% this month, with London being the only region to buck this downward trend.

The drop in property prices was the largest in regions in the North, with a 0.5% drop recorded in the North East and a fall in 0.3% drop recorded in the North West.

This was followed by a 0.2% decrease in property prices in the South West, Wales, the West Midlands and Yorkshire and Humberside. A more marginal fall of 0.1% was also recorded in the East Midlands and the South East.

Although the strength of property prices in the capital has often acted to prop up the UK’s housing market, the 0.1% increase in property values suggests that London’s property boom may be grinding to a halt.

Further figures from the research reveal a discrepancy between the number of buyers and sellers. While the number of potential buyers registering with estate agents has fallen by 2.1% this month, there has been a 1.4% increase in the number of homes being put on the market.

In addition, while there has been a 5.2% increase in the number of properties for sale in the last quarter, a 2.2% decrease in demand was recorded in the same period.

The reduction in the pool of potential buyers has been most evident in the South East, with a 3.4% fall in demand. This was closely followed by London, with a 2.4% fall in demand.

“Weaker demand is to be expected over the summer months, but compared to previous years, the seasonal slowdown has started earlier and developed more rapidly than in previous years,” said Richard Donnell, director of research at Hometrack.

Looking to buy, sell rent or let? Why not visit Propertywide.

avatar
Posted by: WarrenWilson Categories: Buying, Estate Agents, House Prices, Selling Tags: , , 5 Comments

5 Responses to House prices fall across several UK regions

  1. avatar chris lifton says:

    I have cash and desparately want to buy a new home but all I can see is stupid disproportionate pricing. I was stunned, at the inflated prices, they are elevating lower end properties into the bottom of the higher end bracket where they don’t belong and giving vendors unrealistic aspirations. Desparation?
    I have been told by agents when querying these inflated valuations that they are a guide price only, they are inviting offers up to £50k more. For prices that should have been £10k less than the guide price. Sales figures show they are not selling are they fearful of their fee’s? arguably those agents that correctly value have a good turn around of properties which go too quickly. This is causing the market to stall. Until they value realistically and let the market quickly find its own level, tempting the lower end to move up it will chug to a halt. There are plenty of people wanting to buy that have become so disillusioned
    they are staying put until common sense returns. Far better to let people out bid and drive a price up than to hike it and drive potential buyers away let common sense prevail..

    • avatar Nick says:

      The whole problem of house inflation was caused in the first place by ESTATE AGENTS over valuing property, and always has been. It really is time the whole lot of them were put in their place properly. They overvalue so as to improve their take of the selling price. IF, there was a fixed fee that was for selling property, we MIGHT have a more stable market, and a LOT FEWER estate agents, all of them totally unqualifyed to value ANY house. They look upm to see how much another house in that street sold for and add several more thousand to the next one to be offered. Better system in Scotland. Try it.

  2. avatar Jean Mackenzie says:

    Is this just for England? What about the rest of the UK?

  3. avatar raymond daniel says:

    When we sold our property 4 months ago we thought buying another property would be easy, how wrong we were.lots of the properties we have viewed are way over priced,and most of the estate agents we deal with pretend this isnt true.I try to point out to them that I cant see how one estate agent can value a property at X amount and another value the same property several thouands more, no wonder the housing market is in a bad way.
    R.Daniel

  4. avatar Nigel Belshaw says:

    It is the workings of the market, and is simple if the vendor believes you have offered a fair price then a sale may be in the offing. You have also to take into account that the effects of negative equity which will be on the minds of many selling property (also it may cause potential sellers to hold off thus reducing supply). The market will find a natural equilibrium and will undervalue and then overvalue as it always has as people firstly chase what that see as value until it becomes overvalued and so the cycle goes round. What is indubitable is that over the medium and long-term property prices rise.