Number of house buyers falls by a third year on year
Demand for residential property is at the lowest level seen since November 2013, according to the NAEA July Housing Market Report.
The National Association of Estate Agents (NAEA) have issued their latest market report, which has revealed:
- Demand is over a third (35%) lower than July last year
- Supply of housing increased marginally in July
- The number of sales made to first time buyers (FTBs) decreased by 5% from June
- In July, eight out ten of the properties sold were for less than the original asking price
Demand for properties
In July, the number of house hunters registered per member branch dropped to an average of 298, from 330 last month. This is the lowest seen since November 2013, when 292 buyers were recorded and a third (35%) lower than in July last year, when 462 prospective buyers were registered per branch.
Supply of properties
Last month, the supply of houses available to buyers increased marginally, from 37 properties available to purchase per branch in June, to 38 in July.
Properties sold at asking price
Last month, eight out of the ten properties sold per member branch were for less than the original asking price – an increase of 8% from June.
Sales to FTBs and sales agreed
The number of sales made to FTBs decreased in July – from 30% of total sales made to the group in June, to 25%.
In July, the number of sales agreed per member branch remained at eight.
A third (31%) of estate agents reported that there have been no changes in the housing market since Brexit and everything is business as usual.
A further third (31%) of agents stated that the interest from foreign investors has remained the same.
Mark Hayward, Managing Director, National Association of Estate Agents (NAEA) says: “We expected to see uncertainty in the immediate period following Brexit and during the summer months the market always quietens down, so we are optimistic that the housing market will spring back into full swing in the coming months.”