These London boroughs had the biggest rise in homes put up for sale last month

Emma Haslett
Follow Emma
Credit Crisis Forces Downturn In Housing Market
The number of houses for sale in London is in decline (Source: Getty)

You don't have to be an economist to know the number of homes on sale in the UK is in steady decline as people avoid moving house, blaming economic uncertainty.

Now new research has put a number on it, suggesting property supply fell 1.9 per cent in July, after a 1.6 per cent fall in June.

The research, by HouseSimple, showed that figure more than doubled in London, with a four per cent fall in the number of homes coming onto the market.

Bexley was the worst-hit borough, with new sellers falling almost a quarter in July. That was followed by Barnet, where the number of properties on offer fell just under 20 per cent.

But there was some hope for buyers: Redbridge, just across the river from Bexley, was the borough where supply rose the most in July, with a 23 per cent rise. That was followed by Hounslow, where the number of homes on sale rose 19 per cent.

Read more: Every London borough ranked by house price reductions

Price cuts

But just because the number of homes coming to market in the capital is down, doesn't mean price growth has shot up: research published last week by HouseSimple showed more than a third of homes listed for sale have had their prices cut since they were first listed.

Meanwhile, Rightmove's house price index showed London house prices edged up just 1.1 per cent between June and July, and 0.9 per cent in the year to July, with prices in outer London falling 0.4 per cent.

At the time, Miles Shipside, the company's director, pointed out that properties were beginning to hit their "price ceiling".

"Buyers, many of whom are sellers too, will struggle to afford to pay much more," he said. "Wage growth is muted, there are signs that consumer credit is tightening, and at some point there will be the first rise in mortgage interest rates for a decade or more, which will come as a shock to buyers who have either forgotten or have never experienced interest rates going up as well as down."

Read more: Londoners, look away: The best (and worst) cities for house price growth

Related articles