Demand for housing fell to a six-month low in May, with eight out of 10 homes going for less than the asking price.
According to NAEA Propertymark (National Association of Estate Agents), the number of homes which sold for less than asking price rose to 77% last month – up five percentage points from April.
Only 3% of properties sold for more than asking price in May, down four percentage points from April – the lowest level since October.
The number of house hunters registered per estate agent branch fell by 8% last month – from 381 in April to 350 in May.
NAEA Propertymark said this is most likely down to uncertainty triggered by the snap general election, with buyers putting their plans on hold until after the result.
Mark Hayward, chief executive, NAEA Propertymark said: “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.”
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