Supply of new instructions hits four-year high

The number of new property listings this year has risen by nearly 4% compared to 2022, and is only trailing 6% behind the pre-pandemic levels of 2019, research reveals.

Data science firm TwentyEA says the figures are encouraging and indicate that the housing market is steadily recovering after experiencing a slump in recent years.

Though the number of pricier homes being put on sale has improved, there’s a dearth of lower priced homes coming to the market.

The data shows that though there has been a 17% fall in sales compared to last year, the market has shown signs of improvement since hitting rock bottom in February 2023. The first five months of this year saw a 7.5% lower demand than in 2019; however, the current balance between supply and demand is considerably healthier than the precarious situation witnessed in 2021.

‘Regions experiencing the largest increase in supply’

Katy Billany, TwentyEA’s executive director, said: “Our research reveals that the regions experiencing the largest increase in supply are the South West (10%), East Midlands (8%) and Wales (6%).

“Supply volumes have declined in Northern Ireland (16% down) and Inner London (3% down).”

She added: “The good news is that availability of stock has increased, with over 60,000 properties available in May 2023, just 9% less to buy than there were in 2019.”

Decline in demand in every region

The decline in demand has been seen in every region, with Scotland being the least affected, experiencing a mere 0.3% reduction.

Northern Ireland followed with a 10.4% drop, while Yorkshire and the Humber saw a more significant decrease of 14.9%.

These findings suggest that the UK’s housing market is on a promising trajectory towards stabilisation and growth, the firm says.

‘Available stock has increased at every price bracket’

Ms Billany said: “Available stock has increased at every price bracket since a year ago.

“In the price brackets (£350k+), there is more choice for buyers now than there was pre-pandemic, with £1m+ available properties increasing by 37% since 2020.

“Stock levels are only lower in two price brackets (<£350k).

“In summary, the stock shortage is over for properties over £350k, but still acute for the lower priced segment.”