Demand from buyers in the UK fell to a six month low in May and only 3% of properties sold above their asking prices, the latest research shows.
It means that the number of homes selling above asking prices is down by 4% month on month and this is the lowest level since October 2016, the data from the National Association of Estate Agents (NAEA) reveals.
The number of homes which sold for less than asking price rose to 77% in May, up 5% month on month, the report data also shows.
The number of house hunters registered per estate agent branch fell by 8% from 381 in April to 350 in May. The NAEA said that this was unsurprising as political uncertainty ahead of the general election stalled buyers’ plans.
However, demand from prospective buyers has risen by 15 per cent since May 2016, when 304 were registered per branch.
The number of properties available to buy rose by 11% last month to 40 per branch, slightly higher than May 2016 when 37 properties were available to buy per branch.
The number of sales agreed per branch rose from eight in April to 10 in May, the same level seen in March 2017.
‘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,’ said Mark Hayward, NAEA chief executive.
‘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,’ he added.
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