House prices moderate as UK sees a supply increase

House prices moderate as UK sees a supply increase
Without doubt, the East of England was the UK's best performing region in 2016

The latest data from Home.co.uk has highlighted a continuing decline in the London market which is impacting negatively on the national average.

However, not all regions registered average home price declines this month. The strongest rises are in the East Midlands (0.3%) and the North West (0.3%), although these figures were counterbalanced by falls in Scotland (-1.1%) and the East of England (-0.6%).

A seasonal lull is, of course, to be expected at this time of year, but the rapidly declining year-on-year trend shows the real picture. In January 2016 the annualised rate of increase of home prices was 8.2%; today the same measure is a mere 3.1%.

According to Home.co.uk, the supply figures are telling.

New instructions on the market were up across all English regions and in Scotland and Wales in December. The largest increases were in Scotland (+23%) and the East of England (+18%). The lowest supply figures were in the East Midlands (+5%), West Midlands (+6%) and the North East (+6%). This is a relatively rare event for vendors, who often prefer to defer the decision to sell until after the festive period. Such a 'rush to exit' may have been brought about by several factors, including the changes in buy-to-let taxation, overvaluation, fears of rising interest rates and falling prices.


Without doubt, the East of England was the UK's best performing region in 2016.

Prices there have risen solidly for the last five years but this growth period looks to be coming to a close. Home prices have become seriously out of step with earnings (and rents), rising a further 10.2% over the course of the last twelve months. Prices in the region have risen by 44% during the last five years and rapidly increasing supply suggests we should expect a slowdown during the course of 2017.

Overall, the current mix-adjusted average asking price for England and Wales is now 3.1% higher than it was in January 2016, a figure that is predicted to continue its downward trend during 2017.

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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