Stock volumes remain high despite stock shortage

Agency stock remains at an average of 70 properties for the sixth consecutive month, according to Rightmove.

This is in spite of the current stock shortage, according to the portal's June House Price Index, out today [June 22]. In Greater London the supply of properties coming onto the market has plummeted 52.3% year-on-year, which helps explain the 0.5% decline in annual house prices in the capital, to an average of £397,140 - the lowest annual decline across the UK in June.

Meanwhile, the supply of new properties in the North has declined just 33.8%, forcing agents to reduce prices by 10.5% over the year. Average prices have declined to £141,430 – the highest decline in June.

Rightmove reveals that there have been 62,510 price reductions of 2% or more this month, up from the 59,072 recorded in May. Prices across the UK declined 0.4% on a monthly basis and 5.5% annually to £226,436.

Miles Shipside, commercial director at Rightmove, says: “For the equity-rich, 2009 has turned out to be the year of the property deal. Those with a good deposit and a stable job are now finding they can afford a better property than two years ago. This puts them in pole position to snap up the short supply of saleable property in the most popular areas.

"The South appears to be leading the way in terms of increased activity as it has a higher concentration of the mortgageable equity-rich, which conversely means property coming onto the market is in shorter supply as there are fewer forced sellers.”

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