Rising numbers of homeowners put their properties up for sale in August as sale instructions per estate agency branch rose by 40% between July and August, increasing from 10 new listings to 14.
But to achieve a timely sale, sellers must still price their homes keenly to attract an offer.
Propertymark’s August Housing Insight Report, which analyses housing market activity, shows signs of improvements in the market, but chief executive Nathan Emerson warns there are “still challenges ahead”.
Still a buyer’s market
On average, 48 properties are for sale in every Propertymark member branch, marking a two-year high. Meanwhile, the number of viewings per property has ticked up from around three in July to four in August.
Buyers, however, continue to drive a hard bargain.
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In August, the share of properties selling for less than the asking price dipped slightly month-on-month to 80% but remains well above the 40% of homes selling for less than the listed price in August last year.
Homes selling for the asking price rose slightly between July and August to around 15%, while less than 10% of properties sold for more than the price listed.
The time taken between the seller accepting an offer and exchanging contracts remains lengthy.
Around 35% of estate agents reported this period taking 17 weeks or more, but it is less than August 2023, when 40% of agents reported this time frame.
Challenges remain
Nathan Emerson (pictured) said: “Although the year to date has seen the economy take a more stable footing, which has assisted in bringing an enhanced level of consumer confidence to the housing market, it is important to consider there are still challenges ahead.
“We remain at the very start of the trajectory regarding more favourable base rates and only at the starting blocks regarding the UK government’s ambition regarding their new housebuilding targets. It remains imperative that immense effort is placed on upscaling a workforce to take the challenge of creating nearly two million homes across the next five years.”
The long-standing absence of available stock continues to blight both the sales and rental sectors, which affects sales values and rental prices across the UK’s regions, according to Emerson.
“With a new UK government now in situ, there will be a mass evolution for the entire housing sector over the coming five years in terms of planning regulations, building safety, taxation, aspirations to achieve net zero and legislation such as the Renters’ Rights Bill,” he said.
“Fundamentally, the housing sector is about to embark on its biggest transformation for many decades and it remains important that all ambitions are objective and measurable and that they provide balance and fairness throughout. It remains critical that future direction is driven by data insight and wide-ranging stakeholder engagement to ensure housing remains accessible and workable for both residents and investors equally,” he added.
