Property supply stagnates in April according to new data

To compile its Property Supply Index, online estate agents HouseSimple.com tracks the number of new properties marketed every month, in more than 100 major towns and cities across the UK and all London boroughs.

Although more than half (60%) of towns and cities actually saw an increase in supply last month, in many areas the increase was marginal; and some of the UK’s most populated towns and cities experienced large falls in new property listings in April.

Nottingham saw new property listings down almost 11% (10.7%) in April. Similarly in Glasgow and Newcastle, supply last month was down 10.5% and 8.9% respectively. New property listings in London fell by 0.8% in April versus March.

The following table shows the UK towns and cities that have seen the biggest falls in new property listings in April versus March:

 Although many areas have seen constrained property supply in April, that’s not the case across the country. Winchester experienced a massive 35.6% rise in new property listings in April compared to March, while Southport and Maidstone both saw a 25% rise in the same period (25.4% and 24.5% respectively).

The following table shows the UK towns and cities that have seen the biggest rises in new property listings in April versus March:

London

In April, new properties listed across the capital fell by 0.8% compared to the previous month. The borough of Bexley saw the biggest spike in supply, with new property listings up almost 60% (58.9%) in April. Separate research from HouseSimple.com, published in March, highlighted that Bexley was the only London borough where it’s possible to buy a home for less than £100,000.

The following table shows the biggest rises in new property listings in London boroughs in April versus March:

However, more than half of London’s 32 boroughs saw a month on month decline in supply, highlighting the ongoing shortage of new properties being marketed in London.

Alex Gosling, CEO of online estate agents HouseSimple.com comments: “Although 60% of UK’s towns and cities saw a increase in property supply in April, these rises weren’t nearly material enough to make a dent in the stock shortage. There’s simply not enough new stock coming onto the market to meet demand.

April saw the stamp duty hike on second homes at the start of the month feed through to a massive rise in the supply of rental properties. The residential sales market could do with a similar spurt in supply. However, there is a possible knock on effect for the sales market. With an expected drop off in buy-to-let investors purchasing properties because of the 3% surcharge on second homes and buy-to-let properties, this may help to redress slightly the demand supply imbalance, offering first time buyers in particular opportunities to purchase, until the supply tap is turned on again.

However, the Brexit vote could be the fly in the ointment. Any hope of a prolonged period of rising supply could be scuppered by uncertainty over which way the vote will go. We may well see a spike in supply in May as homeowners try to sell their properties before the vote on 23rd June, but supply could well dry up after the vote, depending on which way the British public choose to go.”