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New home Listings fall by 6.6%

The lack of housing supply looks set to reach critical levels over the next few months after research showed a 6.6% UK wide dip in the number of new homes listed for sale at estate agents.

The data has been gathered from the supply index compiled by online estate agent House Simple. The index works by gathering data each month on the number of new properties listed on online property portal Rightmove. Figures are gathered for more than 100 major cities and town around the UK to show the change in the number of new properties coming on to the housing market.

The research this month shows that Loughborough and Taunton were the areas to see the biggest change in the number of new properties for sale, with a respective 28.5% and 31.1% dip.

The results were even more surprising in Loughborough as the area had experienced a substantial jump of 12.6% in the number of properties for sale during the previous month of July.

Overall the results show that that the Midlands and South of England regions have seen the sharpest decline in new properties for sale during August - of the 15 cities with the largest fall in new properties for sale, 12 were in the Midlands and South East.

Figures discovered by the index show that the biggest worry may be the capital, with the number of new London properties coming onto the market falling by 24.8% since June this year.

Compounding the figures is the fact that throughout London's 32 boroughs there has not been a single increase in the number of new properties for sale since the beginning of June this year. Data shows Kensington and Chelsea has been the hardest hit borough with a fall of 43.6% in the number of new properties coming onto the market. Haringey saw the next biggest fall with a drop of 36% over the past few months.

 

Structural Defects Insurance

Alexander Gosling founder and chief executive officer at House Simple believes the market condition is frustrating would be buyers who have their finances in place and ready to go but the supply is just not available.

Mr Gosling added that the current market conditions could be seen as surprising as after the General Election, it was expected sellers would return to the market, and there is no clear indication as to why that has not happened yet.

However Mr Gosling did have words of encouragement for buyers about the August results, stating that a drop in sale activity during August, typically a time for summer holidays is to be expected. The results recorded during September may give a better indication of the balance between supply and demand.

The hope is that after the summer is over buyers will return to the market and be ready to sell during the next few months.

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