The figures come as the Bank of England warned that the UK economy faces further rises in inflation over the coming year. When inflation is factored in, decreases in asking prices are more pronounced and all regions in England effectively saw a slide in the value of homes, the Home.co.uk figures show.
Homeowners are also left with the dual effects of disappearing equity in their property and the rising cost of living.
Doug Shephard, from Home.co.uk, said: “Even those who think that their home’s price is holding up and staying stable are in fact moving backwards when inflation is factored in whilst household bills are soaring.”
The six regions in England to see a year on year fall in asking prices are the north-west, north east, west midlands, east midlands, south west and south east. Of these the east midlands saw the biggest fall, of 2.5%. Asking prices in Wales dropped by 2.1%.
Although greater London, East Anglia and Yorkshire & Humber saw year on year increases, all were below June’s consumer price index of 3.8% and the retail price index of 4.6%. Scotland saw an increase of 3.7%, but this is effectively a drop of 0.9% when the retail price index is factored in.
Across England and Wales Home.co.uk’s figures show that asking prices fell by 0.5% during July and are down 0.2% year on year. The mix adjusted average asking price of homes in England and Wales, advertised on the open market, now stands at £254,818, down £1,294 on last month’s figure.
