The latest Housing Insight report from Propertymark includes figures which it says ‘are encouraging in parts’, but the estate agents’ body warns there are ‘clear challenges ahead’ for the housing market.
An average of 73 new prospective buyers registered per member branch in September, up significantly from August’s 53. September’s viewing numbers were also positive, with an average of 2.3 viewings per property, up from 1.9 the previous month.
Sales volumes, new supply, stock levels and market appraisals all fell compared to the August: sales volumes were down by 1,190; new supply continued to decline, with nine homes for sale per member branch; stock levels fell from 44 properties per sale per member branch in August to 39 in September; and market appraisals dipped slightly from an average of 19 per branch in August to 18 in September.
The number of sales agreed remains static, with 7.3 per member branch.
‘Overall, we are seeing momentum in buyer registrations and in rental demand, which is heartening’, said Propertymark CEO Nathan Emerson.
“But the two big caveats are: one, the transactional infrastructure needs to be more efficient to match that demand; and two, without growth in supply in both sales and rental sectors, we may see these positive signals muted by affordability and access pressures.
“Policymakers and the overall industry must focus not only on stimulating demand but on making sure the system can deliver. The next few months will be pivotal.”
The number of agents reporting the average time from offer acceptance to exchanging contracts taking more than 17 weeks hasn’t changed since August. ‘While this figure is gradually decreasing overall, it remains significantly high’, Propertymark said.
The number of properties achieving asking price remains low, with 93% sold for less than the amount listed and only 1% achieving more than the asking price.
Estate agents who spoke to Propertymark for the report confirmed reports of an unstable market: ‘the market has tightend further, with a pause in both sellers and buyers due to the actions of the government’, an East of England agent said. In Sussex, agents said the market ‘continues to be price sensitive’ but added there had been an increase in buyers who wanted to move.
A South East agent said the market was subdued, ‘especially with rumours and speculation for the budget’. In the East Midlands, an agent reported below-average activity for September, with a dip in viewings and a higher rate of fall throughs.
The agent added:
“The sooner the house buying process is streamlined, the better, as an excess of £10,000 sales have been lost; this does not include the time and effort for the sales staff and hours and days lost.”
