A new study of 600 estate agents across the UK has found that over two in five (42%) of agents have seen a fall in buyer demand levels in the current market.
A further 43% stated that buyers are also offering less compared to the pandemic house price highs of the last two years, with 41% revealing that they are now advising sellers to adjust their asking price expectations in line with the lower level of homebuyer purchasing power being seen.
On the flipside, 32% stated they had seen a slight decline in business from homesellers, with 10% seeing a more significant reduction in seller activity.
However, House Buyer Bureau’s research also revealed that nearly a quarter (24%) have seen an uptick in business.
The juxtaposed anecdotes arising from the market are perhaps to be expected given the unpredictable nature of the market, as well as regional variations presenting a very different picture in some corners of the country.
Looking ahead, 55% of agents are worried about the current outlook for the UK property market, with a quarter fearing the worst in the form of a significant market crash and just 11% stating they still felt confident about the months ahead.
What’s more, 26% believe that we are most likely to see a significant market crash over the coming months, with a further 37% predicting there will at least be a downward turn in house prices, while 27% are anticipating house prices to flatline.
With tough times ahead, it’s hardly surprising that just 12% stated they would be lowering their fee over the coming months, even in an attempt to win more business.
When it comes to just how long agents believe these tough times will remain, 33% believe the market is in for a long term period of adjustment, lasting beyond next year. 41% believe it will be a mid-term correction lasting throughout next year, with 26% hopeful they will return to business as usual by the new year.
“The market is holding firm for the time being, but the wider expectation amongst those on the ground is that a correction is on the way in one form or another,” said Managing Director of House Buyer Bureau Chris Hodgkinson, adding:
“We’re already starting to see early signs of this correction with a good proportion of agents already noticing a decline in both buyer and seller activity, as well as a reduction in the pandemic high house prices that buyers are willing to pay.
With many also fearing a mid to long-term period of muted market activity, it certainly looks as though the sector is in for a tougher year in 2023.”
