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Asking prices fall by £1.6bn in housing glut | City & Business | Finance

For many years sellers have had the upper hand as demand outstripped the number of homes available.

But in a “tightening market” for sellers, stock for sale across the UK rose 10 per cent year-on-year last month, making it the highest June total of new instructions since 2011.

The biggest increases were found in the South-east (18 per cent) and the South-west (21 per cent), according to Home.co.uk’s Asking Price Index.

The first regional supply surge occurred in Greater London, where the total stock for sale has now climbed to the “glut level” last seen in October 2010.

The Index coincides with research from emoov.co.uk which highlights a gap at each end of the UK property market, with a 45 per cent difference between the current average asking price of £414,359 and the average current sold price of £226,906.

This illustrates the gulf between the typical value of homes for sale compared with those that are actually selling in the same market.

This gap is largest in England (25 per cent) with properties selling for an average of £243,639, but sellers listing at an average asking price of £323,336.

Russell Quirk, of Emoov.co.uk, said: “In slower market conditions a seller’s expectation is always likely to differ from what the market dictates.

“In current market conditions it is business as usual for buyers in lower price brackets while things are more lethargic in the higher price tiers.”

Meanwhile, mortgage lenders said there was a spring boost for the market in May, with home loan borrowing up 8.1 per cent on May last year.

The £5.4billion of new lending was 12.5 per cent more year-on-year.

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