New property listings across the UK have fallen for a second month in a row since the general election, down 1.6% in July, the latest research shows.
This follows a drop of 1.9% in June and the figures suggest that the expected boost to the market after the election did not materialise, according to the property supply index compiled by online estate agents HouseSimple.
Home sellers held off marketing their properties before the election but it would appear that the result which produced a Hung Parliament and continued uncertainty from the Brexit negotiations mean that would be sellers are not rushing to the market.
Of the 100 towns and cities covered by the index more areas actually saw an increase in property supply in July compared to June but supply fell as a whole across the country, led by a 30% fall in Newquay and 25.6% fall in King’s Lynn month on month.
However, Dundee in Scotland saw new property listings almost double in July, up 96.9%, while new properties advertised in Truro in Cornwall were up 55.2%, which is less than 30 minutes away from Newquay which has seen the biggest fall.
Supply in London dropped off at more than twice the UK average in July, down 4% compared with June. Supply was strongest in some of the outer London boroughs, such as Redbridge with a rise of 22.7% and Sutton up 13.2%.
‘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,’ said Alex Gosling, HouseSimple chief executive officer.
‘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. However, 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,’ he pointed out.
‘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% to 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,’ he explained.
