The north-south divide in UK property is rearing its head again, only this time it’s the north that’s leading the way.
Rightmove, the online property portal, has revealed that both the supply of homes for sale and sales are falling across the country.
Prices close to record high
However, buyer demand in the north is keeping average new asking prices close to a record high.
Meanwhile, southern regions are reporting big falls in sales and asking prices.
According to Rightmove, sales agreed have fallen by 4.3 percent year on year across the UK. New seller supply has dropped by an average of 5 percent.
The south-west saw the biggest fall in sales at 7.9 percent, followed by 7.4 percent in the east of England. Across the north, sales fell by 1.7 percent.
Miles Shipside, of Rightmove, said: “The national market faces a range of challenges, with overall average asking prices barely changed from last year and activity levels slightly lower.
“Some buyers are hesitant due to the long-drawn-out uncertainty of Brexit, and there is also a slight tightening of mortgage availability and stretched buyer affordability, especially when it comes to raising a deposit.
“There is, however, a marked north-south divide as all northern regions are selling better than those in the southern part of the UK.
“To sell in these more difficult locations you have to undercut the asking prices of similar properties and preferably have a well-finished and expertly marketed home that will all combine to stir hesitant buyer interest.”
According to the Rightmove data, the average property sale took 63 days in May, compared with 56 days in the same month last year.