A property search engine has warned that overpricing and oversupply of properties could be stalling activity in the market.
According to Home.co.uk, last month saw the number of homes being reduced in price reach 74,847; the highest level in almost six years, and a rise of 28% annually.
June also saw property supply in England and Wales grow by 8.5% year-on-year to 516,845 and representing a two-year-high. Also seeing an increase was new instructions, having grown by 11% since last year.
The growth in stock shows little sign of stopping according to the Home.co.uk data; it found that in just the past fortnight, 58,614 new properties have been added to the market. This was mainly driven by the east and south-west of England, which both saw respective rises of 20%.
Commenting on the data and the resulting impact on the market was Doug Shephard. The director of Home said: “These metrics clearly show that now, overall, the market is entering a slowdown phase in the property cycle.
“In short, the downturn that started when the London bubble began to deflate has now spread across sufficient regions that the national figures reflect the same. However, this message has not yet reached many of the vendors that placed their properties on the market last month with optimistically high prices.”