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UK property prices moderate as supply increases
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The most recent data released by Home.co.uk has revealed a steady decline in London’s property market. In turn, this is impacting on the national average.
This said, not all regions of the UK have registered average property price declines during the last month. Increases of 0.3% were seen in the East Midlands and the North West. However, these have been counterbalanced by declines in Scotland (-1.1%) and the East of England (-0.6%).
Seasonal slowdown, yearly drop
Of course, given the time of year, a seasonal slowdown is to be expected. Despite this, the declining year-on-year trend gives a better indication of the overall picture.
During January 2016, the annualised rate of increase for property prices was 8.2%. This year, the same measure stands at 3.1%.
New instructions were up across all regions of England, Scotland and Wales during December. The largest rises were evident in Scotland, with instructions up by 23%. The East of England recorded rises of 18%, while more moderate growth was evident in the East Midlands (5%) and West Midlands (6%).
UK property prices moderate as supply increases
This trend is rare given the festive period and indicates that many people could be in a rush to exit, given changes to taxation, interest rates and the ongoing Brexit negotiations.
Eastern rises
In the East of England, prices have risen considerably during the last five years, but there are signs that this growth may be coming to an end. Property values here have increased by 10.2% over the last 12 months and by 44% in the last five years.
Increasing supply suggests that a slowdown could be evident as we progress further through 2017.
