Property

Housing supply levels drop in October

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9th November 2017

The latest Property Supply Index compiled by online estate agents HouseSimple.com, has revealed that new supply levels fell again during October after a brief boost during September.

HouseSimple.com figures show that the total number of new properties marketed by estate agents across the UK last month was down 4.3% on September, and 1.2% lower in London. This follows a 20% spike in new listings in September, after a quiet summer.

Every month, HouseSimple.com analyses the numbers of new properties listed by estate agents in more than 100 major UK towns and cities to compile its Property Supply Index.

The latest Index reveals that three quarters (75.2%) of UK towns and cities saw new property listings fall in October vs. September, with supply dropping 37.4% in Torquay and 37.0% in Oxford. Wolverhampton also has the unenviable accolade of being the only city in the UK where new property listings have fallen for the fifth consecutive month.

The following table shows the ten UK towns and cities that saw the biggest falls in new property listings in October 2017 vs September 2017:

Town/City

Region

% fall in new listings in October vs. September

Torquay

South West

-37.4%

Oxford

South East

-37.0%

Lichfield

West Midlands

-31.5%

Nuneaton

West Midlands

-31.2%

Aberdeen

Scotland

-31.1%

Telford

West Midlands

-29.6%

Salisbury

South West

-28.6%

Cheltenham

South West

-26.9%

Barnsley

South Yorkshire

-25.7%

Rotherham

South Yorkshire

-25.2

London

After new property supply shot up by more than 40% in September, supply has dropped off alarmingly in October, down 1.2% on the previous month. Any hope estate agents in the Capital may have had that the supply drought was finally starting to ease, seems to have been dashed. Only two boroughs, Ealing (10.4%) and Enfield (10.1%), saw double digit rises in new property listings last month vs September.

The following table shows the five London boroughs that experienced the biggest falls in new property listings in October 2017 vs. September 2017:

London Borough

% fall in new listings in October vs September 2017

Bromley

-10.9%

Greenwich

-9.1%

City of Westminster

-8.0%

Brent

-7.1%

Kensington & Chelsea

-7.0%

Alex Gosling, CEO of online estate agents HouseSimple.com, comments: “A shortage of new properties coming onto the market has been an issue for as long as anyone can remember, and despite a substantial boost in supply in September, levels have lapsed again in October, albeit they only retreated 4.3% which is cause for some optimism.
 
The housing market is in desperate need of a prolonged period of supply growth rather than isolated months where seller numbers rise, only to fall back the following month. We probably won’t see numbers jump again this year, but steady levels in November and December would at least give the market a strong base going into the New Year, particularly with some heavy Brexit headwinds heading our way. The Government can also play its part by delivering a positive Autumn Budget for the UK property market in a couple of weeks’ time. A shake-up of the stamp duty tax system would be a good start.”

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