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While it is important to be aware that there is no one single factor that shapes the property market, it is good to know that not every factor has the same influence or power on the market. While Brexit is the influencing factor that the media focuses on, the current shape of the London and UK property market owes a lot to the fact that the supply of housing isn’t sufficient enough to meet demand.

Anyone with a basic grasp of economics knows that when demand outstrips supply, it is likely that prices will rise. This has been the lead factor in the past decade of property market prices and even though it doesn’t always pan out way, after all, there are many factors associated with house prices, it is a common factor that consistently impacts on the market.

Any positivity is pounced upon in the market

When it comes to London property, there is a modest amount of positivity surrounding the supply of homes to the market. This is because between May and June of this year, there was an increase of new houses being supplied to the London market. In June of 2018, there were 32,927 new homes supplied to the market and this is an increase of 2.8%.

By itself, this increase isn’t going to see supply equal demand, not even meet the increasing levels of demand for property in the capital. However, in comparison with many towns and cities across the UK, London has fared considerably better. It is believed that for June of 2018 75% of towns and cities across the country witnessed a fall in property stock levels.

For the whole country, there were a total of 70,775 homes introduced, which means that London saw nearly half of all the new homes brought to market for June of 2018. The 70,775 figure was a 3.8% reduction on the May 2018 figures and there were some towns and cities which suffered a considerable drop off, impacting on many local markets.

Not every town or city received figures like London

The level of new homes being supplied in Salford fell by 32.8%, for Chichester the drop was 29.3%, for Shrewsbury the reduction was 28.9% and for Runcorn, there was a fall of 25% with respect to new houses being supplied to the market. These drops will only exacerbate problems in these areas and it could lead to prices increasing further.

It would be wrong to be too optimistic about the changes in London property supply of late, but the more positive signs in the market, the better. Hopefully there will be a sustained level of growth for the market, as this could bring about a more favourable landscape for many buyers.

No matter what move you want to make in the London property market, it is best to get the advice and opinions of an expert. Contact me for guidance and I will be more than happy to assist you.