More than half of estate agents say most agreed property sales are taking more than 17 weeks to progress from offer acceptance to exchange, hitting a new high despite signs of improving buyer activity.
Some 51.2% of Propertymark member agents reported that the majority of their agreed sales took longer than 17 weeks to exchange during July.
The delays come despite prospective buyer registrations recovering to an average of 75 per member branch, while the number of sales agreed edged higher to 8.5.
Stock also increased slightly to an average of 46 properties per branch, giving buyers considerable choice and strengthening their negotiating position.
TRANSACTION DELAYS
Nathan Emerson, Chief Executive Officer of Propertymark, says: “The fact that more than half of agents are seeing most sales take 17 weeks or more from acceptance to exchange is particularly concerning.
“Delays in the conveyancing process continue to create uncertainty and can undermine confidence in an otherwise functioning market.”
Propertymark’s findings follow growing industry concern over the length of the home-moving process and the pressure lengthy transactions place on chains.
The report is based on monthly responses from around 100 sales and 100 letting agents across the UK.
BUYERS IN CONTROL
Pricing remains another challenge for sellers. Some 83% of member agents report properties selling below asking price during July, compared with 13% reporting homes achieving their asking price.
New supply increased marginally, with 10.9 properties coming to market per branch during the month, while agents conducted an average of 24 market appraisals.
Phil Spencer, Founder of Move iQ, says: “There is choice for buyers, but affordability and confidence are still holding many people back.
“With 75 prospective buyers registering per branch and 46 properties available, there is clearly interest in moving, but buyers are being selective.”
He adds: “The fact that 83% of agents reported properties selling below asking price shows that sellers need to listen to the market and price realistically if they want to attract serious buyers.”
RENTAL PRESSURE
Conditions remain considerably tighter in the rental market, with nine prospective tenants for every available property during July.
Branches had an average 10.86 properties available to rent and agreed 8.32 new tenancies during the month.
Rental arrears also increased, while 74% of agents reported rents remaining broadly unchanged during July, 18% reported increases and 8% falls.
Emerson adds: “Overall, July demonstrates that there is activity in the market, but activity should not be confused with ease.
“The industry needs greater certainty, more housing supply and a smoother transaction process if we are to turn cautious demand into sustainable market growth.”
