Volume of asking price cuts reaches six-year high in 'stock glut' areas

There’s more gloomy reading for vendors from a new report by website Home, which says the volume of properties slashing their asking prices is at its highest level since October 2012.

It says recent changes in supply represent bad news for those selling. 

There’s been a 10 per cent year-on-year increase in the headline number of properties for sale across England and Wales, following the highest total of new instructions in a June since 2011.

The biggest supply increases were found in the south east (up 18 per cent on the same period a year ago) and the south west (up 21 per cent) 

As a result, overall UK prices are largely unchanged, rising a mere 0.1 per cent in the past month, claims Home.

The total stock of properties on the market in England and Wales is now at its highest level since November 2014, although this masks significant regional variations.

So for example there have been larger than average monthly price increases in Wales and the West Midlands, up 1.0 per cent and 1.1 per cent respectively.

Meanwhile the largest monthly falls were in Scotland (down 0.6 per cent) and the East of England (down 0.3 per cent).

Typical Time on Market continues to rise in London, the south east and the East of England by eight to 13 per cent compared with this time last year. Across England and Wales as a whole Typical Time on Market for England and Wales has dipped marginally to 80 days, two days less than in July 2017.

Home says Greater London has seen a “regional supply surge” where the total stock for sale has now climbed to the glut level last seen in October 2010, prompting widespread discounting. 

However, the website says northern regional property markets are thriving, as is Wales.