It appears that continuing uncertainty surrounding the UK economy and the approach of the holiday season have compounded the already fragile nature of the market with July month on month house sales down -0.1% on June’s figures and a drop of -5.3% in the number of new ‘For Sale’ listings.
One glimmer of light however is that whilst there is an established trend for July house sales to show a fall compared to June, the level of decline in month on month house sales was the lowest seen since the index began in 2007.
A number of regions bucked the trend for the number of properties ‘Sold’ in July compared to June with Wales once again at the top of the ‘hot-spots’ recording an increase of +20.7%, the South West up +13.7% and the North West up +7.8%.
Three regions saw significant declines in their July house sales figures – South East down -32.6%, the North East down -23.2% and the West Midlands down -22.4%.
The same three regions also boasted the greatest growth in new ‘For Sale’ listings against June with the North West up +11.9%, Wales up +11.6% and the South West up +8.2%.
At the other end of the table for new listings ‘For Sale’ (the not-so-hot-spots) were the South East, down -26.4%, Scotland down -17.7% and London down -11%.
A number of cities experienced significant increases in monthly house sales for July - Exeter topped the table with a rise of +46.6% followed by Bristol up +30.5% and Manchester up 27.9%.
The cities recording the largest decline in July for house sales were – Brighton down -43.9% followed by Birmingham down -17.24% and Cambridge down -15.7%.
July data relating to ‘For Sale’ activity was a mixed bag of results for individual cities. Exeter topped the chart for ‘hot-spots’ with an increase of +51.03%, Carlisle up +33% and Nottingham up +30.5%.
Southampton saw the greatest monthly decline in new ‘For Sale’ listings compared to June, down -27.56%, with Milton Keynes down -20.8% and Brighton down -19.7%.
Stephen Watson, Managing Director, Agency Express, said:
“Whilst housing market activity has been marginally lower in July than in June, the level of decline has been smaller than we would have historically expected and certainly the lowest decline from June to July since our index began in 2007.
"I suspect the slowdown in activity is partly due to the time of year as we approach the peak holiday season but also the continued consumer uncertainty caused by a slowing economy.
"On a more positive note, it’s encouraging to see several regions and cities bucking the trend and generating significant growth figures, which bodes well for the short term.
"I hope that interest rates will remain at their current figure late into 2011 and early 2012, providing a much-needed springboard for the housing market to pick up pace again.”
