Instructions and Enquiries Dip Marginally In June

Confidence in the property market has deteriorated slightly in June as the number of active buyers and sellers declines.

Despite the significant increase in the number of registered house hunters per estate agency in May to 307, June’s house hunters have fallen marginally to 305.

The number of house hunters in June have also decreased annually. In June 2018, the NAEA Propertymark Housing Report registered 308 house hunters per branch. However, this has fallen by 1% to 307 in the present.

Supply has also fallen following a brief surge of sellers in May, with June’s number of properties per branch dropping from 41 to 37. This also represents a fall from June 2018 when 39 properties were registered per branch.

Sales made to first-time buyers (FTBs) have fallen on both a monthly and annual basis. June 2019’s data suggests 26% of residential sales were made to FTBs. This represents a 1% dip when compared with May’s figures and a 3% decline from the 29% of FTB sales in June 2018.

However, overall agreed sales remained robust and at the same number as May’s nine sales per branch. This also correlates with the nine sales in June 2018.

Mark Hayward, Chief Executive of NAEA Propertymark, commented:

“It is encouraging to see the housing market bouncing back, with supply and demand rising to the highest levels seen since last year. It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country. More than eight in 10 (81 per cent) properties sold for less than the original asking price in May, which shows that estate agents, with buyers and sellers, are successfully negotiating a property sale, with them coming to an agreement on the value of the home.”

Do these figures suggest that confidence in the market is deteriorating once again? Or, does the resilience in sales suggest a strengthening property market?

Today's Conveyancer