According to FindaProperty.com’s latest House Prices And Affordability Index, this surge of property has forced sellers to reassess the asking prices of their homes to reflect the levels of property available for buyers.
Despite an increase in supply of all property types from studio flats to 5+ bedroom houses, the overall market has been able to prevent a fall in asking prices, stabilising around £220,250. But, first-time buyers have enjoyed a slight fall in the average asking price of property they would traditionally target. First-time buyer properties remained stable and stand at £155,994 in July.
Despite seven of the UK’s regions enjoying stable or rising asking prices in July, any growth was marginal. Scotland and the East of England enjoyed the highest rise in asking prices up 0.4% to £152,967 and £217,616 respectively. The North East, North West, Yorkshire and Humber, East Midlands, and the South East all saw stable or price rises of between 0.1% and 0.3% in July.
London saw its most dramatic fall in prices since June 2008 with a 1.1% drop in the average asking price to £435,110. This was a result of further rises in supply in the capital. Stock levels were up 7% in July and 51.3% since the start of the year. The West Midlands, Wales and the South West all saw asking prices fall between 0.1% and 0.2%.
Nigel Lewis, of FindaProperty.com said:
“The growth in asking prices we’ve seen over the last few months was always in danger of slowing if stock levels started to soar. Over the last few months we’ve seen supply building a steady head of steam as sellers flocked to market. These sellers have been tempted with the prospect of rising prices and the confidence surrounding the market following the election and budget. Finally, prices have succumbed to the laws of supply and demand.
“We’re likely to see this fluctuation of supply and demand for the rest of the year. And if we interest rates have to be put up in order to control inflation, this could have a severe impact on peoples’ appetite to purchase.”
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