Last month saw a considerable drop in housing supply, new research has revealed.A report from online estate agent House Simple shows that new listings on Rightmove dropped by 13.2 per cent last month for the UK as a whole. Some of the most dramatic falls occurred in Scotland, with Glasgow and Edinburgh seeing a decline of 30.3 per cent and 29.7 per cent respectively. In England, both Milton Keynes (28.2 per cent) and Sunderland (28.1 per cent) were not far behind. One-quarter of the towns and cities that saw the biggest falls in new property listings were based in the south-east, while a decline of 15 per cent was reported for London. Alex Gosling, chief executive of House Simple, stated: "Any hope that sellers were finally returning to the market seems to have been a vain one for the time being."Or maybe they’re not confident about market conditions, despite the strength of the economy and the highly competitive mortgage rates on offer at the moment. Somehow, sellers need to be encouraged back to the market because there are buyers galore waiting when they do."Mr Gosling did add that activity was expected to drop in the summer months, but warned that more stock will be needed in the autumn if supply is to meet demand. According to Rightmove's House Price Index for July, the biggest imbalance between supply and demand is currently in the first-time buyer sector. The organisation's director Miles Shipside commented: “More supply of affordable starter homes for the growing demand from both renters and buyers is required, which means more new build for both sectors to meet the country’s current and future housing needs."He added that the challenge for the government is to ensure the right kind of properties are built at the right locations and at affordable prices. Rightmove revealed the average cost of a house in the UK was £294,542 in July. Find out how you could benefit from letting and estate agent software
Chief executive of online estate agent House Simple, Alex Gosling, has described hopes of sellers returning to the market on a long-term basis as ‘vain’ after a report detailing a significant drop in listed properties during July. Gosling believes several factors could be to blame, including a normal slight decrease in activity during the summer combined with a lack of seller confidence in the property market. The number of homes sold fell by just over 1,000 between July and August, according to data from Land Registry.