British housing market is oversaturated in July

July 16, 2018 11:00 amComments Off on British housing market is oversaturated in JulyViews: 91

British housing marketThe British housing market is oversaturated by new homes offered for sale this month. This limits property prices at a time when sales usually suffer from a seasonal lull. The real estate agents are now reporting the highest bid since September 2015.

“Although the growth in the number of vendors is a desirable signal for more liquidity on a generally devoid of market deals, unfortunately, this is happening in a quieter time of year,” said Rightmove director, Miles Shipside.

The number of homes advertised in Rightmove, the largest property site in the UK, was 8.6% higher than in the same period last year. However, the number of sales remained virtually unchanged on a year-on-year basis, marking a minimum decline of 0.2%. The average offer prices for new sales declined by 0.1% in July, which is typical for this period of the year.

However, indicating that previous sellers have given their properties too high, a third of the advertised offers have gone through at least one price drop – the highest share for that period of the year since 2011.

Other industry figures have shown that house price growth in the UK has slowed sharply since the Brexit vote in June 2016, although variations vary across regions.

The slowdown is mostly seen in London and neighboring regions where demand has been hit by higher taxes on expensive properties and shrinking demand from foreign investors. In other parts of the UK, prices are still rising moderately.

According to Rightmove, vendors in oversupply areas will have to compete more actively with prices, presentation and advertising of their property to attract buyers.

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