The number of homes for sale in the U.K. fell to a four-decade low in May, pushing up prices in a country confronted with increasingly-unaffordable housing, according to a survey Thursday. U.K. estate agents had an average of 52 homes for sale last month, down 12% this year and the lowest since records began in 1978, according to the Royal Institution of Chartered Surveyors. The supply of homes fell for the fourth month in a row. But demand among property obsessed Britons rose at its fastest pace in over a year. “Prices across much of the country are continuing to be squeezed higher, with property set to become ever more unaffordable,” said Simon Rubinsohn, chief economist at RICS. Price rises, putting ownership out of reach, especially for first-time home buyers, have been especially acute in London, where the average house price in March was £498,000 ($770,000). The national average is £273,000, according to the Office for National Statistics. The dearth of sales earlier this year was widely blamed on uncertainty ahead of national elections in May, with housing affordability becoming a key battleground in a tense campaign. When the Conservative Party won an outright majority, estate agents predicted a swift return of confidence to the market. “There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case,” Mr. Simon Rubinsohn said. The North West and London saw the sharpest drop in new homes coming onto the market compared with April, RICS said. “More ominously, U.K.-wide listings have now failed to see any meaningful growth since the middle of 2013,” he said. In London, “Educating unrealistic sellers remains an ongoing challenge,” said Jo Eccles, managing director at Sourcing Property, which represents individuals looking to buy or rent homes. “Market prices were already high and the election has held prices at these strong levels, rather than pushing them even higher.” Data from U.K. firm Lonres shows that just 3603 sales were reported in the prime London market so far this year, compared with 4311 in the same period last year. RICS surveyed 322 estate agents, which have a total of 621 branches across the U.K. This article was originally published on The Wall Street Journal
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