Price cutting is becoming the new norm as the market adapts to reduced interest from buyers, according to property listings platform Home.
It says a glut in supply and reduction in demand have led to market saturation in London, the South East and East of England - and now, for the first time in the current market, in the East Midlands too, where supply is nine per cent up on this time last year.
“Expectations are that prices will slide in these regions (with others soon to follow)” says Home.
However, despite the poor performance of those four regions, Home says the average property price for England and Wales actually nudged up slightly in the past month “propelled by huge leaps in Yorkshire and the West Midlands as their regional property booms reach their climax.”
Overall the total stock for sale across England and Wales has increased by 10.7 per cent year-on-year and Home’s Typical Time on Market index continues to rise in London (+12 per cent), the South East (+11 per cent), and the East of England (+13 per cent).
Typical Time on Market for England and Wales has risen to 92 days, three days longer than in October 2017. This is “leading to vendor frustration and price cutting” the platform says.
A year ago, the annualised rate of increase of house prices recorded by Home was 3.3 per cent; today the same measure is just 0.6 per cent “and is trending to zero (and below)” it warns.