Housing Market Demand and Supply Both Slow Amid Uncertainty

NAEA Propertymark notes in their October Housing Report that both demand and supply in the housing market slowed last month amid uncertainty.

Demand for housing

• The number of house hunters registered per estate agent branch decreased by 13 per cent on average last month, from 338 in September, to 294 in October
• This is the lowest number of buyers recorded for the month of October since 2012, when 265 were registered. [Figure 1]

Figure 1: Year-on-year demand from house hunters

Supply of properties

• The supply of housing available also decreased by 13 per cent in October; falling from 46 in September, to 40 per branch on average. This is the same level reported in August, when the heatwave triggered a market lull.

Sales to FTBs and sales agreed

• Since sales to FTBs hit a three-year low in August (20 per cent), the percentage of properties sold to the group has been on the rise – increasing from 22 per cent in September to 23 per cent last month
• The number of sales agreed per branch fell in October, from nine on average in September, to eight per branch.

Mark Hayward, Chief Executive, NAEA Propertymark said:

“Last month’s findings prove that uncertainty surrounding Brexit is having an impact on the sector. It’s possible that many buyers and sellers are putting their plans on hold while they wait for clarity on what the UK’s future relationship with the EU will mean for them and the property market. We’re also entering a quieter period seasonally, where we typically see the market slow down as people put their moving plans on hold until the New Year. With fewer prospective buyers interacting with the market, it’s important those currently trying to sell their home ensure it is priced competitively and is presented in the best possible way.”

Kindly shared by NAEA Propertymark