There is evidence the usual decline in new property market activity ahead of Christmas started a little earlier this year, ahead of the much anticipated November budget. The uncertainty surrounding tax increases and the potential introduction of stamp duty relief left many prospective home movers waiting to see what the outcome would be, according to Propertymark’s latest Housing Insight Report.
The report, which covers October, reveals an average of 8.4 new sale instructions across the membership network’s branches, with 7.8 sales agreed. Stock levels increased to an overall average of 45 properties for sale at each member branch, up from 39 in September.
Comments from estate agents indicate the market is increasingly price sensitive, evidence of which can be seen in the 89% of properties that sold for less than the asking price. The findings are mirrored in Office for National Statistics figures shared earlier this year, which saw average annual house price inflation slow for the first time since December 2023.
Market appraisals, also an indicator of future supply and demand, remained broadly static in October, but have fallen below the levels seen in the first half of the year.
Having said in last month’s Insight Report there was an upswing in “momentum in buyer registrations and in rental demand,” Propertymark CEO Nathan Emerson said October’s numbers paint a “broadly encouraging picture”.
“While the number of new prospective buyers per branch dipped slightly in October, sales activity has held firm, with agreed sales edging up to an average of 7.8 per branch. This demonstrates that serious buyers remain committed and that well-priced, well-presented homes are continuing to attract strong interest.”
The timescales for property transactions increased in October, with 39% of member branches reporting time to complete of 17 weeks or more, up from 35.9% in September. Propertymark has been tracking the sentiment around transaction times since 2015, during which time the figure has steadily increased, but “is showing signs of reaching its overall peak”.
The report is published in partnership with MoveiQ, the property advice website from industry pundit Phil Spencer. The numbers will reinforce what many will already be feeling, Spencer said: “the market is calmer and more manageable than it has been for some time.”
He added:
“Even though there are slightly fewer new buyers registering, those who are active are serious, and the small rise in sales agreed reflects that committed purchasers are still making decisions despite wider economic uncertainty.”
It’s a sentiment shared by Emerson, who concluded:
“Overall, these trends point to a market that is settling, strengthening, and gradually moving into a more predictable rhythm which is welcome news for agents, landlords, and consumers alike.”
