More than eight in 10 estate agents are seeing properties sell for less than their asking price as buyers become increasingly selective, according to Propertymark.
The trade body’s latest Housing Insight report reveals 84% of member agents report homes achieving below asking price during June, while just 9% report properties selling at their asking price.
Buyer demand also softens during the month, with the average number of new prospective buyers registering at each member branch falling to 55.
Despite the decline, sales activity remains relatively resilient. Agents agree an average of 7.8 sales per branch during June, broadly unchanged from the previous month, while properties attract an average of 2.1 viewings.
REALISTIC PRICING
Phil Spencer, Founder of Move iQ, says: “June’s figures show a housing market that is still moving, but where buyers and renters remain cautious. Buyer registrations dipped, while viewings and sales agreed stayed broadly steady, highlighting that demand hasn’t disappeared but buyers are increasingly selective and realistic pricing remains crucial.
“Although inflation is moving closer to target and the Bank Rate has held steady, affordability remains a significant concern, with 31% of adults reporting difficulty meeting their rent or mortgage costs.”
Propertymark’s members report an average of 9.5 new homes coming to market per branch during June, while total stock remains steady at 42 properties.
Market appraisals, which can provide an indication of future supply, rise to an average of 22 per branch.
SALES TAKING MORE THAN 17 WEEKS
Lengthy transaction times remain another challenge, with 35.4% of agents reporting that most of their agreed sales take more than 17 weeks to move from offer acceptance to exchange.
Propertymark CEO Nathan Emerson (main picture, inset) also warns that weaker mortgage activity could influence sentiment during the second half of the year.
He says: “A key concern over the last few months has been witnessing both the number of mortgage approvals dip and the overall volume of mortgage lending fall significantly.
“This will very likely shape market sentiment in the coming months, and it remains something to watch closely, especially with the Autumn Budget fast approaching.”
NINE TENANTS FOR EVERY AVAILABLE PROPERTY
Pressure remains considerably stronger in the rental market, where Propertymark reports an average of nine prospective tenants for every available property.
Agents have an average of 11.25 properties available to rent per branch during June, while 8.15 new tenancies are agreed.
Some signs of easing rental inflation are emerging, however. Almost two-thirds (63%) of agents report rents remaining broadly unchanged, compared with 29% seeing increases and 8% reporting falls.
Average void periods also increase to just over three weeks during June.
Spencer adds: “In lettings, demand continues to significantly outstrip supply, although longer void periods and reports of rents easing in some areas suggest a more nuanced market.”
