Hometrack Housing Survey reveals ‘seasonal’ dip is likely to linger as London market cools rapidly
This month’s Hometrack National House Price Survey reveals:
House prices increased by 0.1% in July – a further decline in the rate of growth from 0.3% last month, and the lowest level of growth over a month since February 2013, as seasonal factors and an increasingly pronounced slowdown in the London market – where prices have stalled in July, take hold.
Demand for housing fell slightly in July, with the percentage change in new buyers registering with agents at -0.9% compared to 0% in June. The gap between overall supply and demand has narrowed sharply in the last three months, pointing to a reduction in the upward pressure on house prices – indeed, the measure of demand has moved into negative territory.
Less than a quarter of postcode districts registered a price rise in July – almost half the level seen in the spring, when 50% of markets were registering price gains.
The proportion of the asking price being achieved is starting to decline nationally, as agents find it harder to push prices ahead in the face of weaker demand. The measure is still relatively high but has fallen from 96.8% in May to 96.1%. In London it has declined more sharply from over 99% to 97.5% over the same period.
The time on the market remains flat at an average of 6 weeks nationally, but there has been a slight rise in London from a recent low of 2.7 (Mar-14) to 4.3 weeks. It’s also starting to rise in the South East, but elsewhere the downward trend continues.
The momentum of price rises in the London market has slowed dramatically in the last few months. Just 12% of London postcodes registered price gains in July. 11% of London markets actually recorded lower prices over the month.