London only region to post June house price increase
Prices in the capital grew 0.3% last month, the only region of the country to post an increase on the previous month. Prices in East Anglia, East Midlands, North East, North West, South West, West Midlands and Yorkshire & Humberside fell.
The report says this fall could be down to the increased number of houses entering the market.
The number of new properties listed during the last month rose in every area of the country, continuing to outpace the rise in demand. London remains the best place to sell a house quickly with each property on the market for just 5.1 weeks before selling.
By contrast, houses in the East Midlands take an average of 12.9 weeks to sell.
Richard Donnell, director of research at Hometrack, commented: “House price growth slowed to a standstill in June as demand fell back and supply continued to increase.
“Demand fell by 0.5% for the first time in five months on growing uncertainty over the economic outlook and the impact of the Eurozone. “On the supply side, the volume of homes for sale continues to grow albeit at a slowing pace. New supply grew by 1.5% in June, but for each of the last three months the growth in new supply has out-paced demand.
“While headline prices remained static in June the survey reveals a shift in the balance of price changes between London and the rest of the country. “Price growth in London has remained steady at 0.3% for the last three months as supply remains tight and supports prices.
“Across all other regions there is evidence of renewed price falls and slowing growth rates on weaker demand. Prices were down across seven regions in June compared to just three regions in March.
“In March just 10% of the south east registered price falls but this has now grown to 26%. In the south west the proportion has grown from 2% to 32% over the same period, while the change has been 11% to 30% in East Anglia.”