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Property supply undeterred by Brexit

Wednesday 5th October 2016

A property supply Index has quashed fears that the supply of homes would be badly hit by the fallout from June's Brexit vote. 
 
Instead of sellers being put off, UK-wide property supply actually grew by 10.4% after the traditional summer slowdown, according to HouseSimple's analysis of Rightmove figures.
 
August is always a slow month for housing activity, with sellers traditionally putting house sales on hold as they go on holiday or spend time entertaining the kids. But property listings have bounced back since, with 69% of UK towns and cities witnessing an increase in listings. 
 
London saw especially strong growth, with a 16.5% rise in new properties listed in September. 
 
The East of the UK also had a strong September, with four out of the top 10 towns and cities for listings situated in the Home Counties. 
 
In Basildon in Essex, for example, supply rose by 61.8% - comfortably the biggest increase in the country – while the supply of new properties in Hemel Hempstead increased by 52.2%. 
 
The West Midlands, too, saw significant increases in supply, with both Hereford and Lichfield witnessing rises of more than 50%. Truro, Chelmsford, Newquay, Stirling, Luton and Torquay made up the rest of the top 10. 
 
By contrast, Falmouth in the South West saw the biggest fall in supply from August to September, dropping by 27.5%. Sutton Coldfield, Ely, Stockton on Tees, Loughborough, West Bromwich, Runcorn, Southport, Darlington and Hull all saw dramatic falls in supply.
 
“The property market continues to defy predictions of a post-Brexit fall-out with a return to form after the summer lull,” Alex Gosling, CEO of HouseSimple.com, said.
 
“The figures don’t show an astronomical uplift in new listings after a typically slow August, but a more than 10 per cent boost in new properties is evidence of a resilience in the housing market that many didn’t expect. This certainly isn’t a ‘rabbit caught in the headlights’ moment for UK homeowners.”
 
He added: “Equally, with the recent interest rate cut putting a spring in the step of buyers – and a further cut on the cards – a degree of market equilibrium may be restored. What was a sellers’ market before the Referendum vote and buyers’ market in the initial months after it may now be somewhere in between. This is no bad thing.”
              

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