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.
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