The monthly rise in availability is the greatest percentage increase in almost three years, according to the National Association of Estate Agents (NAEA).
Its July Housing Market Report shows that the average number of properties available for sale per branch increased from 46 properties in June to 51 in July, the highest number of available properties since November 2013.
At the same time, it says that competition among house buyers could be easing. The average number of house hunters registered per branch shrank from 371 in June to 368 in July, and has been declining month on month since April 2014.
However, the NAEA pointed out that the number of registered house hunters still remains significantly higher than the same time last year when only 250 house hunters per branch were recorded.
An additional positive for house buyers in July has been agreed sale prices. Some 66% of homes in July were sold for less than the asking price, a sharp contrast to May when only 46% of properties sold for less than the asking price. Also, only 4% of homes were sold above the asking price in July, compared to 19% in May.
The increase in housing supply and the steady decline in the number of registered house hunters could be a direct result of high stamp duty rates faced by many potential buyers, the NAEA report suggests.
Almost 90% of NAEA members said that stamp duty either frequently or occasionally deterred house buyers from moving and 92% believe the government should reform stamp duty land tax.
‘The lack of housing supply has been a significant issue over the last few months, so the sign of increasing stock is positive for the market and house buyers in search of their ideal home,’ said Mark Hayward, NAEA managing director.
‘Another positive for house hunters are the recent reports suggesting house prices are on the decline. Our report has found similar, with a significant amount of homes being sold at less than the asking price. This not only signals an appetite for movement in the market, but is also positive news for current house buyers, especially when faced with the prospect of potentially having to pay higher rates of stamp duty for higher priced houses,’ he added.
The report also reveals that the number of first time buyers in July remained static, accounting for 20% of sales, the same as June. However, despite decreasing house hunters and a stagnant first time buyers’ market, sales were unaffected, remaining consistent from the previous month with an average of nine sales per branch in July.
