London and south east affected by house price slump
The fall in property prices has now extended to London and south east England, according to the latest figures from property analytics company Hometrack.
Hometrack’s figures for July how that overall house prices fell by 0.1 per cent, representing the first fall in seven months.
Compared with June, the number of new homes coming on to the market increased by 1.4 per cent while the number of potential buyers registering with estate agents fell by 2.1 per cent.
Property prices in London and the south-east have previously been buoyant but activity slowed significantly in July.
Richard Donnell Director of Research at Hometrack said: “The survey shows that the housing markets of London and the South East – areas that have supported headline price growth since the beginning of the year – are starting to slow as demand weakens and supply rises.”
Prices in London increased by just 0.1 per cent in July and it was the only region to show any increase at all.
Prices fell by 0.5 per cent in the north east; 0.3 per cent in the north west; 0.2 per cent in the south west, Wales, the West Midlands and Yorkshire and Humberside; 0.1 per cent in the East Midlands and the south east; and remained flat in East Anglia.
Hometrack attributed the slowdown to economic turbulence, both at home and abroad.
Mr Donnell said: “Weaker demand is to be expected over the summer months, but compared to previous years, the seasonal slowdown has started earlier and developed more rapidly than in previous years.
“This reflects growing concern over the UK’s economy and the deepening eurozone crisis.”
Meanwhile, the latest figures from the Bank of England show that mortgage approvals fell to an 18-month low in June, with lenders approving 44,192 loans to buy homes, compared with 50,544 in May.
This represents the lowest level since December 2010.