Tuesday, 28 June 2016

Supply of for-sale homes falls in September

The supply of new homes for sale in England has fallen for the first time in seven months, while prices continued their downward trajectory.

The latest monthly survey from property analytics firm Hometrack showed a fall of 0.9 per cent in the number of new homes listed for sale in September.

Prices came down by 0.1 per cent, matching the falls in July and August.

‘House prices fell for the third month in a row on the back of weakening demand, a fall in sales agreed and a re-pricing of unsold stock,’ said Richard Donnell, director of research at Hometrack.

‘While the government’s funding for lending scheme is likely to support a modest increase in mortgage lending, the uncertain economic outlook, together with affordability pressures will continue to act as a drag on housing market activity. Pricing will remain under slow downward pressure, but the tightening of supply will limit the scale of price falls in the short term.’

No region registered price increases in September. House prices were static in London and the south west while they fell in all other regions over the month, the biggest decline of 0.3 per cent was in the north west.

Demand from buyers, measured by the number of people registering with agents, fell by 3.6 per cent, the largest drop in four consecutive month of decline. Between February and May, the number of people registering rose by 25 per cent.

Newsletter Sign-up

Related

Articles

  • Starter Homes to eat up affordable supply

    19 May 2016

    A third of councils to respond to an Inside Housing survey have revealed their entire affordable housing planning requirement could be swallowed up by Starter Homes.

  • SNP falls short of majority

    6 May 2016

    The Scottish National Party (SNP) has won a third election victory in Scotland but has fallen short of a majority.

  • CML issues supply warning

    20 November 2015

    Mortgage lenders have warned that lack of supply is pushing up prices and making homes more unaffordable.

  • Sector's exposure to swap risk falls

    2 September 2015

    The English housing association sector’s exposure to derivatives risk has reduced due to an increase in credit swap rates, the regulator revealed this week.

  • PRS numbers increase as homeownership falls

    6 August 2015

    The number of private renters in England continues to increase above the figure for social housing households as homeownership declines.

IH Subscription