"There is so much negative press around Brexit and very little confidence in the Government after such a calamitous election campaign"
It was predicted there would be a rush of new properties being advertised after the result on 8th June, but a narrow Tory victory combined with Brexit fears and cooling prices seems to have "left sellers in limbo", House Simple says.
More areas saw an increase in property supply in July compared to June but across the UK as a whole, supply was down, with Newquay (30%) and King’s Lynn (25.6%) experiencing the largest decrease in new listings in July.
Property supply in the capital dropped off more than twice the UK average in July, down 4.0% on June. However supply was strongest in some of the outer London boroughs, such as Redbridge (22.7%) and Sutton (13.2%).
Dundee saw new property listings almost double in July, up 96.9%, while new properties advertised in Truro (up 55.2%), which is less than 30 minutes away from Newquay, were up by more than half.
Alex Gosling, CEO of House Simple, commented: “Right now it feels like sellers aren’t really sure what to do. There is so much negative press around Brexit and very little confidence in the Government after such a calamitous election campaign; and fear and uncertainty is weighing heavily on house price growth.
“We were expecting to see a late-Spring boost in new properties being listed in June and a stronger than usual early-Summer, but neither has materialised. Sellers are in limbo. Do they sell while prices are dropping, or do they stay put and see what happens over the coming months, when the Government should hopefully have a clearer Brexit plan?
It does already feel like a semblance of normality is starting to return to the market, and by the end of the Summer the election will be a distant memory so we could well see a strong September in terms of activity.
“At the end of the day, life goes on, and the message to anyone thinking of selling is don’t delay a move simply because you’re worried what the market is going to do next. If your property has dropped 5-10% in value, it’s likely prices will have dropped in the area you’re buying. If you see a place you want, then try and negotiate with the seller to factor in that drop.
“Also, remember it’s a buyer’s market out there, and if you’re selling then you’re most likely buying too. In a hot market, properties are snapped up almost as soon as they are advertised and sellers hold all the cards. That’s not the case in this market, so you are in a much stronger negotiating position.”
