Property News > Asking prices increased strongly in some parts of the UK in year to July
Asking prices increased strongly in some parts of the UK in year to July
Property asking prices have increased strongly in some parts of the UK, such as the Midlands, Wales, and the North and West of England, in the year up to July 2018, the latest index shows.Up 6.4%, Wales saw the biggest annual growth in asking prices, with the average now at £202,378, followed by the West Midlands, up 5.4% to £247,925. Elsewhere, asking prices are up 5.3% in Yorkshire and the Humber to £196,907, and up 5.1% in the North West to £202,248.The data from the Home.co.uk index also shows strong annual growth in the East Midlands, up 4.7% to £233,291. By contrast, asking prices in various other UK regions either fell or remained the same. The South West saw increases of 2.2% on average, while in the East of England prices crept up by 1.4%, and 0.4% in the North East. Asking prices also increased marginally in Scotland, up 0.3%, with average asking prices now £184,199. In Greater London, asking prices fell by 2.7%, but remain high at £529,578 on average. Meanwhile, the South East saw decreases of 0.4%, leaving the average in the region at just over £400,000. Asking prices were also shown to be down 0.2% month on month in both regions. Other month on month decreases occurred in Scotland, down 0.6%, and in the East of England, down 0.1%. The overall supply of property on the market grew by 10% year on year, the index shows. Regionally, the biggest rise in supply was in the South East, up 18%, followed by the South West, up 21%. However, the total number of properties becoming reduced in price whilst on the market is at its highest since October 2012, and the period of time properties typically spend on the market continues to lengthen in some regions - up 13% in the East of England, 12% in London, and 8% in the South East. According to Doug Shephard, director of Home.co.uk, oversupply in Greater London is taking its toll on prices. ‘Since the peak, the typical asking price has dropped some 11%. That’s the equivalent of a reduction of £80,000 in market value of a typical property since January 2016. For some, that will mean negative equity is now an unpleasant reality,’ he warned.He also pointed out that supply is down 23% on homes to rent in London over the last 12 months, which could lead to significant rent rises over the next two years. ‘In the meantime, investors are busy adding to their portfolios in northern English towns and in Wales, and they will continue to do so until yields become less attractive due to rising prices and possible oversupply of rental accommodation as occurred in London in 2013, which made rents dip markedly,’ he added.