Property

Buyers continue to play wait-and-see game as house prices continue to slide

Warren Lewis
|
17th June 2019
For Sale 212

The latest data and analysis from Home.co.uk has revealed that it's becoming increasingly difficult to sell a property in the UK, especially in those regions undergoing a price correction.

Aside from London, a recovery in supply in most regions suggests that vendors have got over their Brexit jitters for now, but they are going to have to be very patient and perhaps lower their price expectations.

The slowdown is gradually spreading through the regions and this, coupled with Brexit uncertainty, is hampering home sales. Prices appear to be reaching their peak in several more regions, and price-cutting looks inevitable as properties spend longer and longer on the market. Only Wales, currently the UK's best-performing region, has so far escaped the slowdown.

Overall, properties in the principality are spending no longer on the market than they were a year ago although in Cardiff, the leading Welsh property market, the slowdown may be just beginning as indicated by a 4% rise in the Typical Time on Market.

The UK's next best-performing region in terms of price inflation is the West Midlands and Time on the Market there is increasing rapidly (up 15% year-on-year), with the same trend showing for all other English regions and Scotland.

Overall, annualised price growth in England and Wales is sliding further into the red, -0.6%, despite a seasonal month-on-month rise of 0.3%. London's annualised losses have notched back again from 2.9% to 2.6%, paving the way for recovery. Asking price falls in the South East continue (now 2.4% year-on-year) and have worsened in the East of England (3.6%).

Only three regions have outpaced monetary inflation over the last twelve months: Wales, West Midlands and Yorkshire. In June 2018, the annualised rate of increase of home prices was 1.4% for England and Wales; today the same measure is -0.6%.

According to data from Home.co.uk, the typical time on market for England and Wales is currently 90 days (median), nine days longer than in June 2018, making it the slowest June since 2013. National average price growth slides further into the negative (-0.6% year-on-year).

Supply of new instructions recovers in some regions but remains down 15% in London, as potential vendors refrain. Typical Time on Market indicates the slowest June in the London market for ten years.

Despite the slowdown, seasonal factors again nudge up the average home price in England and Wales (0.3% month-on-month). Asking prices rose again in all English regions (except the East and South East where there was no change), Wales and Scotland over the last month, mainly driven by aspiration but not mirrored by demand.

Typical Time on Market rises indicate the worst regional slowdowns are in Greater London (+17%), the East of England (+19%), the South West (+18%) and the South East (+17% year-on-year).

East of England is the UK's worst-performing region, with the average asking price down by 3.6% over the last year. Total stock levels across England and Wales remain stable.

The largest regional supply increases were observed in the West and East Midlands (both +10%).

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