The housing market remained resilient in May, with sales holding steady and property stock edging upwards despite continuing economic uncertainty, Propertymark’s latest Housing Insight reveals.
The average member branch agreed eight sales during the month, unchanged from April, while the number of available properties increased marginally to 44.
However, new prospective buyer registrations dropped to 64 per branch. Some 84% of responding agents reported properties selling below their asking price, while only 11% said homes achieved the asking price.
Branches received an average of 10.1 new sales instructions and conducted 20 market appraisals during May. Properties attracted an average of 2.2 viewings, unchanged from April.
SALES PIPELINES REMAIN SLOW
Nathan Emerson (main picture, inset), CEO of Propertymark, says: “May’s figures demonstrate a housing market that continues to show resilience despite ongoing economic and geopolitical uncertainty.
“While we have seen a slight dip in prospective buyer registrations, stock levels have edged upwards, giving consumers more choice and helping to create a more balanced sales market.”
Despite agreed sales remaining stable, lengthy transaction times continued to affect the market. Some 40.4% of member agents said most of their agreed transactions took more than 17 weeks to progress from offer acceptance to exchange.
Emerson adds: “The Bank of England maintaining the base rate has provided a degree of stability, but affordability remains a significant challenge for many households, with buyers continuing to take a cautious approach.
“This is reflected in properties typically achieving below the asking price and transactions continuing to take more than 17 weeks to progress from offer acceptance to exchange.”
Phil Spencer, Founder of Move iQ, says the combination of greater choice and properties selling below asking price created opportunities for prepared buyers.
And he adds: “The fact that homes are taking longer to complete and most are selling below asking price suggests there is room for sensible negotiation, particularly for buyers who are well prepared with their finances in place.”
RENTAL COMPETITION REMAINS INTENSE
The gradual improvement in choice for buyers contrasted sharply with conditions in the private rented sector.
Rental stock fell to an average of 12.09 properties per member branch as tenant demand increased, leaving approximately eight applicants competing for every available home.
Propertymark’s measure of agents reporting problems with rental arrears eased marginally to 2.1%.
Emerson warns that the imbalance between rental supply and demand remains firmly in place. He adds that legislative change and continued pressure on landlords risked limiting investment when additional homes were urgently needed.
Read the report in full HERE.
