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Wales experiences the biggest summer slowdown

Michael Lloyd

August 6, 2019

Wales saw the biggest monthly fall in property supply (-7.1%) in July compared to other areas in Britain, online estate agent Housesimple’s Property Supply Index has found.

Swansea (-8.6%), Cardiff (-7.6%) and Newport (-4.4%) all saw a reduction in the number of new homes to the market. Meanwhile the number of new property listings across 100 major UK towns and cities fell by 3.3% in July.

Sam Mitchell, chief executive at Housesimple, said: “The summer holidays are upon us and a drop in new property listings from their annual peak is not uncommon.

“We’d expect to see this trend continue into August, as people go away for their summer holidays or make the most of the British summertime. However, those not jetting abroad should consider using this time as a chance to list their property and make the most of the reduced competition.

“With a new prime minister in Number 10, all eyes are now firmly on what he has in store for the UK property market. The suggestion to move the burden of stamp duty from buyers to sellers has caused the biggest stir.

“It might help first-time buyers or those moving up the chain, but it runs the risk of bringing the property ladder to a grinding halt as those at the top end of the ladder will be deterred from ever downsizing to free up larger homes.

“Whatever is decided, the most important thing for policy makers is to provide clarity to the market as quickly as possible.

“With uncertainty about Brexit and policy changes expected to increase in the months to come, smart sellers should look to take advantage of the relative calm of the summer to get their moves over the line.”

The slowdown between June and July was gentler this year (3.3%) than in 2018 (-5.9%). With 59,710 new property listings coming to market, July 2019 was the third best month for listings this year, after May and June. This is an indication that underlying momentum within the market remained strong.

The East Midlands had a 1.5% rise in new property listings, with notable rises in this region in both Mansfield (21.8%) and Lincoln (4.3%). There was also marginal growth in Yorkshire (0.9%) and the West Midlands (0.1%) in July.

However, the North East experienced a -6.9% fall in new property listings in July, impacted most by the -17.8% reduction in Gateshead and a -12.5% drop in Newcastle upon Tyne.

London house sellers also felt the heat with new supply down -3.8% in the capital from June to July. While new sellers came strongly to Croydon (9.2%) and Greenwich (8.8%), fewer new listings were reported in Bexley (-15.7%) and Lambeth (-13.6%) in July.


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