New research has revealed the extent of the slowdown in the UK housing market which has recently been hit by the growing squeeze on incomes and the uncertainty surrounding Brexit and the snap election.
Agents are not only finding it harder to secure their properties’ asking prices, homesellers are having to wait longer to agree a sale, if they are able to sell their property at all.
Analysis by the HomeOwners Alliance found that in May 55% of all properties listed for sale resulted in a successful sale, compared to 59% a year ago.
The other 45% were either taken off the market by the seller or simply remained listed without a sale being completed.
Properties that are selling are also taking longer to do so, with the average property on the market for 60 days before a sale is agreed compared 55 days a year ago.
The findings were compiled using data from EstateAgent4Me, an online tool from the HomeOwners Alliance which allows home sellers and buyers to check the vital statistics of estate agents in their area.
Properties nationwide are also achieving less of their valuation than a year ago. In May 2016, the average British property achieved 96.4% of its asking price, but that has now dropped to 95.8%.
Hometrack said that the downturn in the market was likely a result of uncertainty resulting from Brexit and the snap election.
In London it is even worse. A year ago, properties in the capital stayed on the market for an average of 56.6 days each, but now it takes agents an average of 72 days to agree a sale.
Similarly, only 37.3% of listings now result in a sale, compared with 48.3% in May last year. In May 2016, properties in the capital were achieving an average of 98.1% of their asking price, but just a year on that figure is just 95.8%.
Paula Higgins, chief executive of the HomeOwners Alliance, said: “On the basis of these figures, it would be reasonable to assume that there has been some market slowdown between May 2016 and May 2017. Fewer properties that are listed for sale are resulting in completed sales, and those properties that are taking longer to sell and are slightly under-achieving on their asking price compared to May 2016.
“All of this would point to the fact that the market is more challenging and that homeowners recognise this. The uncertainty created by the Brexit vote and now the hung Parliament is unlikely to convince anyone that the market is likely to improve. Nevertheless, home owners that need to sell should not be dissuaded. Doing your research and picking a good local agent should still result in a successful sale, even if it might take a bit longer than usual.”
Key National Market Indicators – May 2016 vs May 2017
| Indicator | May 2016 | May 2017 | Change |
| Listings resulting in a sale | 59% | 55% | -4% |
| Length of time on the market | 55 days | 60 days | + 5 days |
| % of asking price achieved | 96.4% | 95.8% | -0.6% |
Key London Market Indicators – May 2016 vs May 2017
| Indicator | May 2016 | May 2017 | Change |
| Listings resulting in a sale | 48% | 37% | -11% |
| Length of time on the market | 57 days | 72 days | +15 days |
| % of asking price achieved | 98.1% | 95.8% | -2.3% |
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One positive thing about Brexit is we should be able to know the real value of houses in this country to the point where we can afford buying them.
According to Rightmove data for this year, the average time it takes to sell in London is eight a half weeks or 60 days. I think that’s still quite quick? https://www.portico.com/blog/vendor-advice/how-long-does-it-take-to-sell-a-london-home