The November 2023 Propertymark Housing Insight Report highlights several trends and statistics within the UK housing market.
There has been a 14% decrease in the number of properties available for sale, and a 26% reduction in new properties coming to market, indicating a cooling of the market. There is also a 6% decrease in the number of buyers registered.
While there’s a noted decrease in adults finding it very or somewhat difficult to afford their rent or mortgage payments, the overall affordability concerns persist, especially in light of increasing loan arrears. The average number of new sales instructions per member branch has decreased, indicating a reduction in supply. Concurrently, the number of sales agreed per member branch has also decreased, reflecting overall market slowdown.
The report suggests an expected continuation of the seasonal trends as the year ends, with potential further cooling of the market and continued focus on affordability and economic challenges. Nathan Emerson, Propertymark CEO, commented:
“Economic uncertainty continues to pervade the UK economy and housing markets. In the residential sales sector, seasonal trends are undoubtedly weighing on market performance. However, there are also strong indications that the market is cooling in general. Demand, as measured by new buyer registrations, is trending downwards and though offset by a reduction in existing stock levels and new supply, price pressures are increasing.
This is evidenced by the majority of members reporting that properties continue to sell for less than asking price. In the lettings sector, supply and demand remain relatively static, but imbalanced with the equivalent of nine new applicants registered for each available property. Despite this, Christmas would appear to have come early to the sector, with the number of new tenancies agreed decreasing as tenants delay moving until after the festivities.
Although rents continue to rise in key segments, around a quarter of our members reported rent falls in November (up from 14% in October and 4% in September) pointing to a market correction in motion. Looking forward to December, we are likely to see the entrenchment of seasonal trends as we head towards the end of 2024.”
Anneke Bobber, NAEA Propertymark Regional Executive for the West Midlands, said that supply still currently “outweighs” demand with buyers who can proceed being “few and far between”. She continued:
“Prices are having to reflect the tougher market conditions and price reductions are plentiful. As we now approach Christmas the focus from moving seems to be on hold for most, however, local agents advise a good number of projected instructions for the New Year.”
Toby Leek NAEA Propertymark President Elect, said:
“Whilst the year draws to a close we continued to see viewings taking place and sales progressing in the same vain we have seen for most of the year. After a year of interest rates at this level, some are seemingly getting used to the fact they may be here for longer and to plan a move in any case. The market appraisals we have seen and discussions with clients planning for a potential move next year has been encouraging.”
