Online estate agent HouseSimple claims that in July the number of vendors listing homes on Rightmove plummetted by 13.2 per cent across the UK.
In London the drop was even greater, approaching 15 per cent.
HouseSimple analysed the number of new properties listed on Rightmove in July compared to June, in more than 100 major towns and cities, including all 32 London borough.
Most of the 100 locations saw significant falls - as much as 30 per cent in Glasgow and Edinburgh, and by 28 per cent in Milton Keynes and Sunderland. Swindow saw a 25 per cent drop.
In London, Bexley saw a 31.4 per cent drop in July while high-end Kensington & Chelsea saw a 24.5 per cent drop.
“Any hope that sellers were finally returning to the market seems to have been a vain one for the time being. A boost to new stock levels in June suggested that we were finally starting to see some movement from sellers, but that momentum seems to have been short-lived” claims Alex Gosling, HouseSimple chief executive.
“We fully expected activity to drop off in the summer months, but come the autumn the market needs to replenished with stock to realign the supply versus demand balance” he says.