Brexit sparks housing supply drop in two thirds of towns

Lichfield and Winchester registered the biggest drop in supply in June, with new property listings down 37% and 36.5% respectively. Four of the top ten biggest fallers in June were in the South of England.

Although the majority of areas saw supply levels fall in June, there were a few areas that bucked the trend. Biggest risers in June were the Scottish towns of Inverness and Stirling, where new property listings were up 30.5% and 18.5% respectively. Out of the top ten risers, half the towns were in the South of England.

New properties listed across London fell by 12.8%, following a fall of 2.4% in May. Wandsworth and Waltham Forest saw the biggest drop in supply, both down 34.9%, following a big rise in supply in both these boroughs in May.

Only five out of 32 boroughs saw an increase in supply last month, with new property listings in Barnet (up 11.4% in June) and Barking and Dagenham (up 8.8%) leading the way.

Alex Gosling, CEO of HouseSimple, commented: “Fear and uncertainty over the Brexit vote definitely had an impact on buyer and seller confidence in June, with many sellers holding off putting their properties on the market until the result was known. Now we know, and although the decision has come as a bit of a shock, at least a degree of uncertainty has been taken out of the equation.

“The property market can now roll up its sleeves and get on with it. Nothing has fundamentally changed overnight and people still need to buy and sell homes whatever the market conditions.

“We still have a supply shortage, and this may well counter any fallout from Brexit. There were concerns about the London market faltering, but demand is still strong in the capital and the weak pound should attract foreign investors looking to pick up bargains – particularly at the top end of the market.

“For the rest of the year, we may see a small dip in prices as there are choppy seas ahead, but its certainly not the ‘end of the world’ levels predicted by some doom-mongers. Supply should hopefully edge up, as fears around the impact of Brexit dissipate, and sellers feel more confident about market conditions and the wider global economy.”