“Red warning lights” for London and SE markets, warns website

A website that monitors house prices says “red warning lights are flashing as market conditions in London and the South East deteriorate”. 

Home says prices in those locations continue to slide and marketing times are rising but, most worrying of all, the supply of property for sale has risen to near seven year high.

By contrast it says Wales, the East Midlands, West Midlands, the North West and Yorkshire have thriving property markets.
 
Overall, supply of property for sale in the UK is up eight per cent year on year according to Home.

The site says the average time on the market for properties on sale has risen between 15 and 18 per cent in London, the South East and the East of England. 

Across England and Wales as a whole the average time on the market is now 78 days.

Doug Shephard, director of Home, says: “Home prices may have nudged up this month across England and Wales but red warning lights are flashing as market conditions in London and the south-east deteriorate.

“Prices continue to slide and marketing times are rising but, most worrying of all, is that the supply of property for sale has risen to near seven-year highs in both regions, and this rising trend shows no signs of abating.

“In stark contrast, Wales, the East Midlands, West Midlands, the North West and Yorkshire have thriving property markets.

“The reversal of fortunes continues for Britain’s bipolar property market. Over-supply threatens to tip downturn into disaster in the already hamstrung markets in Greater London and the south-east.

“The psychology of property market downturns is well documented and buyer sentiment may be summarised by the phrase, ‘Who wants to catch a falling knife?’

“Moreover, the East of England looks set to follow the same path as supply rises rapidly, marketing times lengthen and price growth falls further below the level of inflation.”