UK property supply sees decline since General Election

Recent research has indicated that property listings have dropped for the second month in a row since the snap General Election.

According to House Simple, July saw a fall of 1.6% following June’s slightly steeper decline of 1.9%.

Following the result on 8 June and the expected stability it would bring, a rush of new properties to the market was anticipated. However, paired with Brexit concerns and slowing house price growth, the slight Conservative victory has not resulted in the supply surge that was expected.

Whilst last month saw a greater increase in supply when compared to June, the number of available listings across the UK was down. Seeing the largest falls were Newquay and King’s Lynn at 30% and 25.6% respectively.

Whilst London saw a drop of 4% in July, other areas of the UK experienced growth in the number of new listings.

96.9% was the level of growth seen in Dundee, whilst new properties on the market in Truro grew by 55.2% during July.

Commenting on the statistics was Alex Gosling. The CEO of House Simple highlighted the uncertainty in the market, drawing attention to the favourable negotiating position of buyers.

“Right now it feels like sellers aren’t really sure what to do. There is so much negative press around Brexit and very little confidence in the Government after such a calamitous election campaign, and fear and uncertainty is weighing heavily on house price growth.

“We were expecting to see a late-Spring boost in new properties being listed in June and a stronger than usual early-Summer, but neither has materialised. Sellers are in limbo. Do they sell while prices are dropping, or do they stay put and see what happens over the coming months, when the Government should hopefully have a clearer Brexit plan?

“It does already feel like a semblance of normality is starting to return to the market, and by the end of the Summer the election will be a distant memory so we could well see a strong September in terms of activity.

“At the end of the day, life goes on, and the message to anyone thinking of selling is don’t delay a move simply because you’re worried what the market is going to do next. If your property has dropped 5-10% in value, it’s likely prices will have dropped in the area you’re buying.  If you see a place you want, then try and negotiate with the seller to factor in that drop.

“Also, remember it’s a buyer’s market out there, and if you’re selling then you’re most likely buying too. In a hot market, properties are snapped up almost as soon as they are advertised and sellers hold all the cards. That’s not the case in this market, so you are in a much stronger negotiating position.”

Today's Conveyancer