Property News > Supply of homes for sale in the UK falls to lowest for July since 2002

Supply of homes for sale in the UK falls to lowest for July since 2002

The property market can certainly not be described as stable as of late. There is an ever-increasing demand for homes and a dwindling supply, landlords are faced with ever-growing inconvenient policy changes which make renting an unsuitable option for many, first-time buyers are met with heightened difficult to step on the property ladder and second steppers appear to be stuck in a rut as moving on from their first home seems to be almost impossible.With this, it comes as no surprise that more and more Britons are choosing to renovate than move on, and young people are turning to the so-called Bank of Mum and Dad to help them out with both their first home, and the second should they choose to upsize. However, for those seeking a home, things are starting to become even more difficult. The supply of homes for sale in the UK has fallen to its lowest number for 15 years. The supply of homes available to but in the UK in July was at the lowest level recorded for the month since 2002, whilst demand continued to grow.Overall, the total name of number properties available to buy on estate agents’ books dropped from 37 to 35 in July. Further to this, research also showed that the number of sales made to first time buyers fell from 30% in June to just 23% in July, the lowest level seen since last September when the rate was at the same level.Prior to this, the last time it was lower was back in November 2015 when just 21% of sales were made to first time buyers. Though, a dwindle in sales is often typical for this time of year as the number of sales fell per branch in July whilst in June, there were 11 sales agreed per branch, compared to just eight in July. Thus, seasonality continues to affect house hunters as the number of people looking for properties fell 10% per branch from June to July, falling from 384 to 347, the lowest it has been since November 2016 when 344 prospective buyers were registered per branch. However, still a considerable increase from July last year when just 298 were recorded.The proportion of properties sold above their asking price in July totalled 3%, up 1% from June, though the number of homes which sold for less than their asking price rose to 80%, the highest level since the turn of the year. Though, there is not too much cause for concern with this as a dip in the market during summer is completely natural and it is likely it will return to its normal levels. A subdued July and August followed by a boom in September is a regular happening and an influx of new properties coming onto the market should be on the horizon, though it remains to be seen whether this year bucks that trend just yet. 

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