House prices fall for first time in seven months
House prices in England and Wales have fallen for the first time in seven months in July as demand for new housing has begun to slow.
Figures from property analytics firm Hometrack’s monthly national house pricesurvey reveal that the average price dropped by 0.1 per cent from June to July.
Hometrack also found demand for housing was on the decline, with 2.1 per cent fewer buyers registering with agents during the month, while the average time a property spent on the market was from 9.4 weeks to 9.5 weeks.
The company said that the gap between demand and supply was likely to increase over the summer, leading to further falls in pricing.
Richard Donnell, director of research at Hometrack, said: ‘House prices are particularly sensitive to changes in levels of demand and during the first four months of the year there was a strong rise in the number of buyers registering with agents – especially in southern England – and with this came price rises.
‘Now, however, demand is starting to falter across the board. The seasonal downturn has begun and this combined with a weakening economy is impacting on demand for housing.’
Mr Donnell said that eight out of 10regions suffered a drop in prices in July.
In terms of demand, the south east of England saw the biggest fall after 3.4 per cent fewer buyers registered. London (2.4 per cent) also suffered an above average decline in registrations.
The monthly survey includes 1,500 agents and surveyors across the country.