Annual house price growth has dropped to just 0.4% after being dragged down by London and the south of England, Rightmove research shows.
In the South West prices are down by 1.3% compared with last year, while in the North West they’re up by 3.2%. This reflects that more people are buying further north for affordability reasons.
The number of homes for sale in the south of England is up by 9% on this time last year, compared to 2% across the rest of Great Britain.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “In our offices, prices may still be rising marginally in more affordable areas but are softening elsewhere.
“We are still agreeing sales but the amount of choice and some unrealistic vendor ambitions are compromising activity.
“Unfortunately, only some vendors are getting the message. Unless your property is realistically priced you won’t stand out from the sizeable crowd and give yourself the best possible chance of attracting offers.”
There’s some anxiety in some sectors about potential tax hikes in the upcoming Autumn Budget.
One such rumour was stamp duty could be replaced by a new tax on the sale, rather than purchase, of homes worth more than £500,000. More than half (59%) of sales in London would be affected by such a move.
Rightmove said it has detected no immediate sign of movers changing their plans due to stamp duty and mansion tax rumours.
But it added: “Jitters caused by the uncertainty over what could happen in more than two months’ time risk slowing the parts of the market which would be most impacted.”