The report found that average asking prices had fallen by just 0.1 per cent over the last month and said London was starting to rebound.
However, it noted significant regional contrasts, with northern and western regions described as being in “the final throes of their growth phase”, while the East of England is “firmly in the grip of the inevitable price correction” with asking prices down 2.9 per cent over the last year.
The report noted that the typical time on the market for properties in England and Wales now stands at 96 days, around six days longer than at this point last year. The East of England and East Midlands, both up 13 per cent, and the South West and West Midlands, both up 11 per cent, have all seen the biggest growth in the time taken to sell.
First green shoots
The latest asking price index particularly focuses on London, where the firm believes the “first green shoots” are appearing.
It noted that the combination of “rock-bottom sales” and rental stock levels were leading to a “revitalisation” in certain areas, with the likes of Wandsworth, Hackney and Haringey all seeing double digit rent inflation, soaring yields, and the prospect for surging house prices.
Doug Shepherd, director at Home.co.uk, said all of the top performing boroughs in the capital, in terms of rent growth, would soon translate into the top performing sales markets as investors spotted the opportunity to capitalise.
He added: “It is arguable that rents in London have been too low for far too long. Until recently they had been kept down by over-investment due to numerous landlords incentivised by ultra-low interest rates.”