The number of houses sold in June fell by -13.7% compared to May and were down -10.7% on May 2010 and -16.9% down on May 2009. However, it is not unusual for house sales to fall in June as this has happened in five out of the last six years.
And, it was far from a uniform pattern across the UK. Four regions saw an uplift in monthly sales in June whilst others experienced significant double digit falls.
The North West had a really great month with a 26.3% increase in monthly house sales, as did Scotland, where the number of houses ‘sold’ rose by 17.7%. House sales in Wales were up 8.6% and in the West Midlands they were up 2.8%. In the East Midlands sales remained at May’s levels. The heaviest falls in house sales in June occurred in the South East (-18.8%), Greater London (-15.9%), Yorkshire (-14.9%) and the South West (-14.8%).
Leicester was the UK city that had the greatest increase in monthly house sales in June with a massive rise of 55.0%. Three other cities experienced an increase – York (20.4%), Newcastle (14.9%) and Milton Keynes (8.5%).
Across the UK, the number of houses that were put up ‘For Sale’ in June went down by -10.2% compared to May. This was -17.0% down on May 2010 but up 32.8% on May 2009.
Again there were significant regional differences when it came to the number of new ‘For Sale’ listings. Scotland saw a 3.9% increase and Greater London was up 3.4%. However, the North East saw a dramatic fall of -24.4%, with Yorkshire seeing a -19.2% fall. In the South West there was a drop of -16.5% and the East Midlands was down -15.1%.
Coventry was the UK city that had the biggest increase in the number of houses put up ‘For Sale’ in June, with a massive rise of 28.0%. Four other cities experienced an increase - Edinburgh saw a 9.4% rise, followed by Birmingham (6.6%), Leicester (6.2%) and Brighton (1.5%).
Commenting on the latest Index results, Stephen Watson, managing director, Agency Express, said: “Whilst it’s disappointing to report that housing activity as a whole has seen a significant drop in activity in June, there is positive news for the regional markets that have suffered in the last 12 months such as Scotland, Wales, the North West and the West Midlands.
“We could be seeing a reaction to the Government’s austerity measures as they start to impact on public sector workers. A dip in consumer confidence based on uncertainties about employment and wages will cause many to put their house moving plans on hold.
“However, there are some grounds for optimism. The Government’s new shared equity First Buy scheme has just been launched and this could kick start the sales of some new build homes on developments up and down the country.
“And there is encouragement from the fact that there was an increase in properties coming onto the market in Greater London in June. Activity in London often has a ripple effect in the following months throughout the rest of the country.”
