May sees fall in properties selling over asking price

Recent research has revealed that May saw just 3% of properties sell for over the asking price.

According to figures from NAAEA Propertymark, this is the lowest level recorded since October 2016 and is a 4% drop in comparison to the previous month.

The report also indicated that there was a 77% increase in the number of homes which sold for less than the asking price during May. This is a monthly rise of 5%.

Per estate agent branch, the number of registered house hunters fell by 8% last month, dropping from April’s total of 381 to 350. This has largely been attributed to the political uncertainty following the snap General Election, with buyers choosing to put their moving plans on hold.

However, there has been a 15% rise in demand since May last year, when the number of register buyers was just 304 per branch.

Also falling during May was the number of available properties to buy per branch, dropping by 11% last month to 40. However, compared to the correspondent month last year when available properties were 37 per branch, this is a slight rise.

Largely contrasting to the other figures, the number of agreed sales per branch saw an increase during May, rising from eight up to 10. This is the same level as seen in March.

Commenting on the report was Mark Hayward. The Chief Executive of NAEA Propertymark stated: “As a rule of thumb, periods of political uncertainty impact the way buyers and sellers interact with the housing market. In May, it looks like new buyers were stalling their house search until after the election; however the number of sales agreed per branch increased meaning the political landscape hasn’t deterred all house hunters.

“Following the result of the general election, it will be interesting to see how the market reacts over the coming months as summer is peak house-moving season.”


Today's Conveyancer