Property availability plunged to a 15-year low in July as the market suffered a seasonal downturn.
The number of properties available to buy on estate agents’ books dropped from an average of 37 in June to 35 in July – the lowest since NAEA [National Association of Estate Agents] Propertymark’s records began in 2002.
Sales to first-time buyers fell by almost a third (30 per cent) to 23 per cent – the lowest since last September.
Along with remortgagors, demand from first-time buyers has been helping to support the property market in recent months.
June figures from NAEA Propertymark revealed a surge in sales to first-time buyers had helped the market bounce back from a period of political uncertainty.
In July, in line with seasonal trends, the number of sales agreed per branch declined - from 11 to eight.
Meanwhile, the number of people looking for properties fell by 10 per cent from 384 per branch to 347 – the lowest since November 2016.
Just 3 per cent of properties were sold above asking price in July, while the number of homes that went for less than asking price rose to 80 per cent.
NAEA Propertymark chief executive Mark Hayward said: “It is natural for the market to dip in the summer and then recover. We usually see a subdued July and August, and then a boom in September with an influx of new properties coming onto the market, it remains to be seen whether this year is typical.
“We’d also expect to see the number of house hunter increase, as buyers strive to complete sales before the winter kicks in.”
Mike Pendergast, an adviser at Cheshire-based Zen Financial Services, said: “It is probably seasonal, but first-time buyers especially are finding it increasingly difficult to buy due to high property prices.
“The income multiples from lenders are not allowing them to buy the properties available, and they have got to rely on family and friends to provide a deposit.
“The property price rises over the last four to five years mean it is a problem for first-time buyers getting on to the ladder.”
simon.allin@ft.com
