UK property listings dip as supply remains tight
The number of properties listed by UK real estate agents fell by 6.6 percent in the month of August, as demand continues to outstrip supply, new research by online estate agent House Simple recently found.
London has seen a dramatic decline in new listings over the summer, with supply reaching critically low levels, the firm noted. Since June, the number of properties for sale has declined by 24.8 percent.
All of London’s boroughs have seen an overall decline over the summer. Kensington and Chelsea displayed the most notable drop off, with new listings declining by 43.6 percent since the start of June, while Haringey saw a 36 percent decline.
Outside of London, Taunton saw the biggest month-on-month decline in August, with new listings dropping 31.1 percent. New Loughborough listings were down 28.5 percent.
“Across the country there are thousands of frustrated buyers, with finance in place, ready to purchase, but the property supply reservoir has dried up,” said Alex Gosling, the House Simple’s chief executive officer, noting that the May general election was expected to buoy selling appetite.
“We would expect to see activity drop off over the summer holidays, so September will give us a better gauge as to how imbalanced supply and demand are right now. The hope is that after a summer when supply fell off a cliff, sellers will rediscover their appetite over the coming months.”
Meanwhile, the UK Office for National Statistics (ONS) reported yesterday that UK house prices have grown by 5.2 percent in the year ended July, down from 5.7 percent in June. Prices in England rose by 5.6 percent on average; Northern Ireland saw growth of 7.4 percent, Wales was up 0.3 percent, while prices Scotland fell by 1.3 percent.
The average home cost £295,000 in England, £173,000 in Wales, £154,000 in Northern Ireland and £196,000 in Scotland, the ONS said.