Property prices followed a clear trend over the last ten years, but this pattern has reversed, says Rightmove.
The property portal found that house prices are increasing sharply in the North East of England and dropping substantially in Kensington and Chelsea.
Within the London Borough of Kensington and Chelsea, the average asking price has decreased by over £178,000 to £2.29m during July, a 7.2% fall.
However, in the North East, prices are up 2.1% over the month to an average of £147,251. The region experienced the largest increase in asking prices of anywhere in the UK.
Meanwhile, the South East, the South West and the West Midlands all recorded price drops in July, found Rightmove. However, the portal’s monthly regional figures are regarded as unstable.
Annually, asking prices in London saw the highest gains, increasing by 7.8% over the year. Wales recorded the greatest decline, of 1.7%.
The overall data for London somewhat disguises the huge differences between boroughs. Typically unpopular areas, such as Redbridge, Waltham Forest, Hillingdon and Merton, witnessed rises of up to 15%. Prices stagnated in expensive areas such as Islington, Fulham and Richmond.
The average asking price in England and Wales rose slightly during July, by 0.1% to reach a record of £294,542.
Earlier this month, the Royal Institution of Chartered Surveyors (RICS) released figures that mirror Rightmove’s discovery that there was a sharp decline in the amount of homes up for sale.
Rightmove found: “The number of properties coming to market is running at a weekly run-rate 10.6% below the same period in 2014. The biggest drop-off in fresh supply is in the typical first time buyer sector with two bedrooms or fewer.
“The shortage of suitable property for sale highlights the need for an urgent and marked increase in the overall housing stock to help keep pace with the growth in household formation.”1
Rightmove has noted a growing battle between first time buyers and buy-to-let investors over the short supply of two-bedroom flats and houses.
In the beginning of July, RICS reported that the amount of homes for sale was at its lowest level since records began in 1978. It cautioned that the lack of stock is a vicious cycle as vendors are put off selling because there are no homes to move to.