UK house prices drop as new buyers stay away
First fall in average UK property prices this year as growth stalls in London
UK HOUSE prices have fallen for the first time in seven months, as the demand for property declines but vendors continue to put their homes on the market.
Property analyst Hometrack published a survey today that said that prices across the country fell by 0.1 per cent in July.
The Independent reports that the expected Olympic boost to the London property market has failed to materialise, as the survey showed growth has particularly slowed in London and the south east.
The capital was the only region where prices increased - by 0.1 per cent - but there is a rapid decrease in the rate of price growth and the number of postcodes in the capital registering price falls is rising.
London and the south east’s property prices had been supporting the national market and keeping average house values up.
Prices elsewhere saw a larger decline: the north west saw a fall of 0.3 per cent, the south west, Wales, the West Midlands and Yorkshire and Humberside falls of 0.2 per cent and the East Midlands a fall of 0.1 per cent. The north east experienced the biggest price reduction - 0.5 per cent.
Richard Donnell, director of research at Hometrack, said the survey highlights the growing difference between supply and demand in Britain’s housing market.
The number of new properties on the market rose by 5.2 per cent over the last three months, but demand has dwindled: the number of new buyers registering with estate agents fell nationally by 2.2 per cent. Donnell warns July’s fall is likely to continue.
He said: "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.
"This reflects growing concern over the UK's economy and the deepening eurozone crisis."