10 Dec

Continued lack of housing supply in the UK

Continued lack of housing supply in the UK

There is set to be a continued lack of housing in the UK for the foreseeable future, suggests a new property supply index.

Research from HouseSimple revealed new property listings across the UK dropped by 11.9 per cent last month - the largest drop in 2016.

London also showed a slowdown in the number of homes coming to the market, with a 18.3 per cent drop in supply. However, the biggest falls were seen in Hereford with 42.1 per cent and 35.8 per cent in Chichester.

In contrast, Swansea saw a strong rise in the number of properties coming on the market with an 89 per cent increase.

Alex Gosling, chief executive officer of House Simple, explained the ongoing lack of supply is set to continue to push up prices.

“It will come as something of a surprise then to see supply levels fall again last month, and a near 12% fall will be a concern when supply levels are extremely low in many areas,” said Mr Gosling.

He added: “This drop in supply could simply be a correction after new listings jumped in September. It could also be due in part to the fallout from the EU vote and shock Trump election result, although the property market had proved extremely resilient to these two seismic events in the space of a few months.

“The lack of supply has been an issue throughout this year. There are plenty of buyers but sellers have been scarce on the ground. Now that Christmas is less than three weeks away, new listings are unlikely to pick up significantly, although for those sellers who need to sell, or fancy testing the market, they could have their pick of committed buyers.”

Looking forward to 2017, Mr Gosling added that some sellers could be motivated to sell as the new year begins.ADNFCR-1222-ID-801829611-ADNFCR

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