Sweltering July saw property supply dry up
by Housesimple on 8th August 2018
New property listings in July, compared to June, fell by 6% across the UK, and 12.7% in London, as Brits made the most of some very un-British like weather and held off marketing their homes.
According to the latest Property Supply Index compiled by HouseSimple.com, which looks at new properties listed every month by estate agents in 100 towns and cities, the number of new homeowners listing their properties fell below 67,000 in July, after surpassing 70,000 in June. In London, July was the first monthly dip in new supply since December 2017.
Although thousands of Brits decided to holiday at home this summer, several weeks of sweltering weather in July saw buyers and sellers hit the beaches and parks, rather than view and list properties.
July and August are traditionally quieter months both for buyers viewing properties and sellers listing homes, and a dip in new supply is not unexpected, even if the weather had been more typical of a British summer. And Housesimple figures actually show that in more than half (55.7%) of the towns and cities analysed, new stock levels were up in July vs June.
As for specific towns, Blackburn in the North West, saw the largest drop off in supply last month, with new listings down almost half (48.6%) on June. While, new supply in Poole was up 42.8% in July.
The following table shows the ten UK towns and cities which saw the biggest drop off in new sellers in July versus June:
% decrease in new listings in July vs June
Yorkshire and the Humber
The following table shows the five UK towns and cities which saw the largest increase in new sellers in July versus June:
% increase in new listings in July vs June
After new supply levels in London reached a three-year high last month, July listings fell significantly, with new listings down 12.7% versus June, and every borough except Newham seeing stock levels fall.
Camden saw almost a third fewer new homeowners listing their properties in July compared to the previous month. The Royal Borough of Kensington and Chelsea, and the borough of Hackney saw new property listings fall 26.1% and 24.1% respectively in July vs. June. Newham (11.9%) was the only London borough to register an increase in supply.
The following table shows the five London boroughs which saw the biggest drops in the number of new sellers listing in July vs. June:
% change in July vs June
Kensington and Chelsea
Richmond upon Thames
Hammersmith and Fulham
Sam Mitchell, CEO of HouseSimple.com, comments: “The summer months tend to see a drop off in buyer and seller activity as families head overseas on their holidays. This year, more families chose to stay at home and we might have expected to see a mini-boost in supply as a result. However, no-one predicted we’d have such a glorious July, and it’s hardly surprising people headed to the beach rather than the estate agent.
“There’s no evidence to suggest that buyers and sellers are withdrawing, and even yesterday’s rate rise, is unlikely to have a dramatic impact on the market.
“We may well see subdued seller activity in August as more hot weather is predicted. And then a strong September as we enter the crucial Autumn period up to Christmas. However, for sellers who might want to steal a march on the competition, putting your property on in August when stock levels are lower could pay dividends, as buyers will have less choice over the next month.”