It appears that despite growing concerns over the health of the market and continued uncertainty surrounding the UK economy, property activity across the UK for the month of August was surprisingly resilient, with month on month properties ‘Sold’ up +3.9% on July, the highest increase seen in August since the Index began in 2007.
However, the number of new ‘For Sale’ listings in August was down -1.3% on July as seasonally expected.
A total of eight regions were integral in shaping the positive national trend for the number of properties ‘Sold’ in August compared to July, with the South East at the top of the ‘hot-spots’ recording an increase of +28.5%, followed by Scotland up +22.4% and the North East up +11.7% - but the overall number of properties ‘Sold’ in August remains well below the peak of the market from May 2007 and 5.3% down against August 2010 figures.
The regional ‘not-so-hot-spots’ for August house sales were the East Midlands down -9.0%, Central down -6.6% and East Anglia which was down -4.8%.
It was a similar regional picture for the highest growth in new ‘For Sale’ listings in August against July, with the South East up +13.3%, Central up +8.8% and Scotland up +7.3% but these were the only three regions showing an increase in August of ‘For Sale’ listings.
At the other end of the regional table for the number of new listings ‘For Sale’ were London which was down -15.2%, the North East down -8.4% and the East Midlands down -6.0%.
A number of individual cities experienced significant increases in monthly house sales for August compared to July with Birmingham topping the ‘hot-spots’ with an increase of +75.0%, followed by Southampton up +40.5% and Coventry up +34.6%.
The cities recording the greatest decline in month on month properties ‘Sold’ in August were Exeter down -16.7%, with Oxford and Milton Keynes both down -10.3%.
New ‘For Sale’ activity in August compared to July saw Manchester topping the charts with an increase of +13.5%, Coventry up +6.8% and Cambridge up 4.7%.
Exeter saw the greatest monthly decline in new ‘For Sale’ listings compared to July, down -20.6%, with London down -15.2% and Carlisle down -14.3%.
Stephen Watson, Managing Director, Agency Express, said:
“With growing concerns and pessimism over the health of the UK property market, it’s reassuring to see the August data bucking the seasonal trend and evidencing some resilience. It’s also very encouraging to see a large number of regions and cities producing surprisingly positive August growth data despite the continued uncertainties.
"I believe the August Index is further evidence of the laws of demand and supply in that properties in good condition that are realistically priced, will sell.
"In addition to the shortage of properties on the market, I believe there is still considerable work to be done by the mortgage lenders in terms of ‘creativity’ with their mortgages that will help overcome the issue of unaffordable deposits for first time buyers."
