Asking prices edge up in the month but annual growth rate dips to a 0.3% decline
The traditional Spring surge for the UK’s property market has been slowed by Brexit uncertainty and a lack of confidence, according to the latest Asking Price Index by Home.co.uk.
Asking prices nudged by 0.2% between March and April, but despite optimism in the northern and western regions lifting prices, overall growth has slipped into negative territory at 0.3% on an annual basis across England and Wales.
By comparison, the rate of year-on-year price growth this time last year was 1.3%.
This is largely the result of declining sentiment in the South and East of England, with asking prices dropping in London (3.1%), the East (2.9%), the South East (1.7%) and the South West (0.4%) throughout the year.
Rising caution amongst vendors is weighing on property supply, with the number of new homes for sale being listed on the UK market down 8% and total property supply up by just 3.7% year-on-year.
In addition, houses are taking longer on average to sell, with the index reporting properties unsold in England and Wales spend an average of 93 days on the housing market; 15 days more than in April 2018.
Despite the increase in marketing times, Home.co.uk’s Director, Doug Shephard, said that the “concomitant reduction in supply” means prices should not be affected much in the short-term.
However, he went on to say: “With the no-deal Brexit scenario seemingly less likely following an exceptionally close parliamentary vote, the negotiations could go on forsome time. The short-term outlook for the UK therefore resembles a slow-motion property market with fewer participants.”
Last week, the EU-27 and UK Prime Minister Theresa May agreed to a 6-month extension to Brexit that set a new deadline of Thursday the 31st of October.