Home   Kent   News   Article

Fall in number of properties sold in Kent

The number of properties sold in Kent this year has fallen, as political uncertainty puts off potential buyers.

The Royal Institution of Chartered Surveyors said that constraints on affordability have also affected buyers, following significant rises in the cost of properties in recent years.

Up to the end of July, the most recent month for which data is available, 13,403 properties had been sold in Kent.

The number of properties sold in Kent fell 14% in the seven months to July
The number of properties sold in Kent fell 14% in the seven months to July

It is a 14% drop compared to the same seven months in 2017, a picture reflected across the South East, where sales were 12% down.

Across the UK, sales were lower in each month to July than in the corresponding 2017 month, and were down by 9% in total.

Simon Rubinsohn, chief economist at RICS, said: “Uncertainty about the economic outlook on the back of the never-ending Brexit negotiations has become an increasing drag on transaction activity in the housing market.

“The mood music amongst buyers has also been impacted by affordability constraints as hefty price gains over recent years have pushed ever higher the size of required deposits.”

The government has encouraged the building of new homes to help deal with the housing supply, with an aim of developing 300,000 new properties a year nationwide.

It has also encouraged first-time buyers to purchase new builds. Its Help to Buy scheme offers favourable saving rates for first-time purchasers, and equity loans or shared ownership schemes at the time of purchase.

House prices have actually increased in Kent, up 4% in September compared to last year
House prices have actually increased in Kent, up 4% in September compared to last year

But between January and July, just 1,395 new homes were sold in Kent, 33% fewer than in the same period last year.

Second-hand property sales also decreased by 12% to 12,008.

Mr Rubinsohn said: “The government’s Help to Buy scheme has provided some support for the new build sector but this has left the second-hand segment even more exposed.

“On top of this, a lack of stock for the sale in this part of this market has compounded the problem. Existing home-owners are staying put for longer meaning there is less property available for prospective purchasers to view.

“Meanwhile, in the background is the concern that the cost of mortgage finance is likely in due course to become dearer.”

While sales volumes have dropped, house prices in Kent have increased.

The average property sold for £298,759 in September, 4% more than a year previously.

First time buyers paid an average of £244,594.

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More