Estate agents see ‘more than seasonal’ drop in supply
12th September 2017

The number of houses going on the market took a 13.1% dip last month – more than double the seasonally adjusted figure allowing for the usual August holiday lull.

Two thirds of town and cities saw a drop compared with July, with the biggest declines in Coventry at 33% and Winchester, 31.1%, while London fell by 22.3%, according to the latest Property Supply Index compiled by online estate agents HouseSimple.com.

August is historically a quiet month for sellers marketing their properties, as families head off on their summer holidays. But even taking this into account, the total number of new properties listed for sale last month was down 5.9% on the corresponding month in 2016.

In London, 30 out of 32 boroughs saw a drop off in new listings last month. Richmond saw the biggest fall, (down 42.2%) of any borough for the second consecutive month. Only Bexley (17.4%) and Sutton (8.4%) saw an increase in property supply in August vs. July.

HouseSimple.com CEO Alex Gosling said: “August tends to be a quiet month for property transactions and new sales instructions. Not surprisingly, supply fell substantially as the country went on its summer break.

“Few people will be concerned by the drop off in new listings between July and August. More of a concern is the 5.9% drop off when comparing last month with the corresponding month in 2016. Supply continues to be a major issue.

“The property market needs a strong September after a subdued period since the General Election. Hopefully a line will have been drawn under the first half of the year, concerns about economic conditions will have dissipated, and buyers and sellers will come back from their summer break with renewed confidence to move forward.”