The property crisis in the UK is showing no signs of abating, with supply falling further in August, according to a new report.
Research conducted by online estate agents HouseSimple.com indicates that new properties being listed in August were down by 6.6%. This was following a 13.2% decrease recorded in July.[1]
Regional falls
In London, the lack of supply is beginning to reach critical levels. The total number of Londoners putting their properties on the market has dipped sharply over the summer months, with new listings down by 24.8% since June.
When compiling its Property Supply Index, HouseSimple.com examines the number of new properties that are listed on Rightmove each month, in more than 100 towns and cities across Britain. The pay-as-yo-go agent also looks at the number fresh properties coming onto the market in all London boroughs. Their latest research indicates that less than a quarter of towns and cities involved in the investigation saw increases in listings during August.
The UK towns and cities that experienced the largest falls in new property listings in August, in comparison to July, were found to be:
| Town/City | Region | % fall in new listings in August vs July |
| Taunton | South West | -31.1 |
| Lichfield | West Midlands | -29.3 |
| Loughborough | East Midlands | -28.5 |
| Chelmsford | East | -24.1 |
| Bedford | East | -22.4 |
| Hemel Hempstead | South East | -18.7 |
| Eastbourne | South East | -18.4 |
| Salisbury | South West | -17.4 |
| Halifax | Yorkshire | -16.8 |
| Stockton-on-Tees | North East | -16.7 |
| Derby | East Midlands | -16.4 |
| Northampton | East Midlands | -15.8 |
| Winchester | South | -15.6 |
| Chichester | South East | -15.0 |
| Sutton Coldfield | West Midlands |
-14.7 [1] |
Capital Pains
Areas in the Midlands and in the South of England were the most hit regions during the last month, with 12 of 15 cities in these places experiencing the largest drop in new property listings. Taunton saw property listings fall by 31.1% in August, with Lichfield seeing a drop of 29.3%.[1]
In London specifically, HouseSimple.com has indicated that there has been a substantial dip in the number of properties coming onto the market. Since the beginning of June, not one borough in the capital has seen a rise in new property listings, which are down by 24.8% from June to August.[1]
Kensington and Chelsea, home to the wealthiest in London, has seen the largest fall in listings. New properties coming onto the market were down by 43.6% in this region from the beginning of June. The borough of Haringey also faired poorly, with new stock levels falling by 36% since the start of the summer.[1]
New property listings in London boroughs during August in comparison to June were found to be:
| London Borough | % fall in new listings in August vs June |
| Kensington and Chelsea | -43.6 |
| Haringey | -36.0 |
| Bexley | -35.7 |
| Camden | -35.5 |
| Newham | -32.0 |
| Richmond upon Thames | -31.9 |
| Barnet | -31.5 |
| City of Westminster | -28.7 |
| Southwark | -28.3 |
| Waltham Forest | -27.7 |
Frustration
‘Across the country there are thousands of frustrated buyers, with finance in place, ready to purchase, but the property supply reservoir has dried up,’ said Alex Gosling, CEO of online estate agents HouseSimple.com. ‘They must be scratching their heads as to why sellers aren’t marketing, as there’s no clear or single reason why sellers are sitting on their hands. The General Election was expected to be the catalyst for sellers returning to the market.’[1]
‘We would expect to see activity drop off over the summer holidays, so September will give us a better gauge as to how imbalanced supply and demand are right now. The hope is that after a summer when supply fell off a cliff, sellers will rediscover their appetite over the coming months,’ Gosling concluded.[1]
[1] http://www.propertyreporter.co.uk/property/august-sees-66-dr0p-in-new-property-listings.html