The supply of newly marketed homes in the UK fell overall in June but increased in London to its highest level for three years, the latest research shows.
New home sellers were up 2.8% in London in June compared with the previous month but were down 3.8% nationwide, the first drop in supply since December 2017, according to the analysis of 100 major towns and cities by online estate agents House Simple.
However, despite property supply levels falling in June, it was still the second month in a row where new listings surpassed 70,000. The housing supply index shows 70,775 new properties were marketed by estate agents in June compared to 73,577 in May.
Also, new property listings in June across the UK were 60.4% higher than the corresponding month in 2017. Some 76.6% of towns and cities saw new stock levels fall month on month.
Salford in the North West experienced the largest drop off in supply with new listings down by 32.8%, followed by Chichester down by 29.3%, Shrewsbury down 28.9%, Runcorn down by 25% and Stockton on Tess down by 24.1%.
The largest increase in new sellers in June was Lichfield with a rise of 27.6%, followed by York up 25.7%, Hastings up 18.8%, Winchester up 17% and Lincoln up 16.2%, the data also shows.
In London the rise in new properties listed by estate agents was led by Camden with a rise of 31%, then Merton up 11.4%, Bexley up 9.2%, Barking and Dagenham up 9% and Greenwich up 8.4%. The boroughs of Kensington and Chelsea and Hammersmith and Fulham saw supply fall 9.5% and 8.6% respectively.
‘Although new property supply fell slightly in June, seller activity has picked up noticeably since the middle of May, particularly in London, where prices have cooled. Buyers are viewing a lot more properties before they make an offer, and with more sellers listing in the past month, they have more choice,’ said Sam Mitchell, House Simple chief executive officer.
‘More than ever, the key for motivated sellers is to price correctly and competitively to attract buyers. It’s important to do your research, to check what properties are selling for on your street and in the nearby area. This is probably not the right market to price high, hoping to squeeze a little more money out of buyers,’ he explained.
‘Although we are seeing real intent from buyers to purchase, even with Brexit looming, they are more willing to move onto the next property, or wait and see, if they believe the price is too high,’ he added.
