PropertyNov 8 2017

Property supply falls in October

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Property supply falls in October

The supply of property coming on to the market fell in October following a rise during the previous month.

According to online estate agent HouseSimple.com, UK property supply was down 4.3 per cent in October, with London witnessing a 1.2 per cent decline.

The falls came after a 20 per cent spike in new listings in September, which followed a quiet summer.

The estate agent’s latest index reveals three quarters (75.2 per cent) of UK towns and cities saw new property listings fall in October, with the biggest declines in Torquay (down 37.4 per cent) and Oxford (down 37 per cent).

Wolverhampton became the only city in the UK to see new property listings fall for five months in a row.

The declines came as confidence in the housing market dropped to a five-year low amid growing concerns about the UK’s economic outlook.

Meanwhile, Luton (72 per cent), West Bromwich (70.6 per cent) and Lincoln (68.5 per cent) saw the biggest increases in property listings.

The fall in London followed on from a 40 per cent rise in supply during September, with Bromley (down 10.9 per cent) and Greenwich (down 9.1 per cent) the worst-affected boroughs.

HouseSimple.com chief executive Alex Gosling called on the government to take action in the Autumn Budget to get the housing market back on its feet.

Reports have suggested Chancellor of the Exchequer Phillip Hammond could use the Budget to announce a stamp duty holiday for first-time buyersalthough he has apparently ruled out large-scale investment in new property supply.

Mr Gosling said: “The housing market is in desperate need of a prolonged period of supply growth rather than isolated months where seller numbers rise, only to fall back the following month. 

“We probably won’t see numbers jump again this year, but steady levels in November and December would at least give the market a strong base going into the New Year, particularly with some heavy Brexit headwinds heading our way. 

“The government can also play its part by delivering a positive Autumn Budget for the UK property market in a couple of weeks’ time. A shake-up of the stamp duty tax system would be a good start.”

Adrian Kidd, IFA at London-based Radcliffe and Newlands, commented: “I think something definitely needs to be done.

“I read a report suggesting it would be a good idea to flip stamp duty on its head and make vendors pay for the property they are selling. They would be able to move having to pay less on their onward purchase. I can see that really working and getting people moving.

“Obviously, the government stamp duty changes from last year – the 3 per cent surcharge – has meant a lot of people fall into that category. I think there is a lot of uncertainty. 

“There is a shortage of supply at the moment and we have a lot of first-time buyers that we are seeing agreements in principle for but who just can’t find a property.”

simon.allin@ft.com