Number of new instructions down 9% year-on-year as annual house price growth remains negative
London’s property market is at its slowest in a decade, whilst the markets across England & Wales are likewise slowing, the latest Asking Price Index by Home.co.uk reveals.
According to the index’s Typical Time on Market indicators, properties spend 96 days (median) on the market in the capital, some 23% more than the same period last year.
This compares to 89 days across the rest of England & Wales, which is 11 more than May 2018 and the slowest the property market has been in the month of May since 2014.
The index goes on to suggest that vendors maintaining their “wait-and-see” approach is affecting supply and demand, with the supply of new instructions falling 9% in the year to May across the UK, rising to 28% in London.
Additionally, despite a 0.5% increase in average asking prices between April and May, and prices rising in every region, house prices across England & Wales remain 0.2% lower than the same period in 2018.
Yorkshire & the Humber and the East Midlands both reported the highest monthly price growth of 1.3%, with Wales and the West Midlands seeing the largest annual change at 5.1% and 4.4% respectively.
By comparison, annual house price growth remained negative in the East of England (-3.0%), London (-2.9%), the South East (-1.5%) and the South West (-0.9%).
Doug Shephard, Director at Home.co.uk, said: “Uncertainty is a highly corrosive factor for the economy. Decisions are postponed indefinitely, projects put on hold and normally bold actors become cautious in the midst of the unknown.
“Key factors such as cost, importance of timing and the irreversible commitment involved in a home purchase make the current economic environment almost unbearable for the average buyer or seller.”
Fewer first-time buyer transactions are including the relief on stamp duty land tax, according to recent research by London Central Portfolio.