New data from respected consultancy TwentyEA showed that the market is proving unexpectedly resilient - and in the case of new instructions, running unusually strongly.
In July new instructions ran at their highest levels in four years, 4.5 per cent above the comparable 2022 figure and now sitting at around 986,000. Sales agreed are about 659,000.
TwentyEA says stock levels have improved across all price brackets, particularly among properties at £350,000 and over. In the bracket of £200,000 to £350,000 the number of available properties has increased more than 50 per cent year on year.
But shortages remain under £350,000 and are exacerbated by the lack of new homes under construction. And compared with 2019’s pre-pandemic ‘normal’ market, stock levels remain down in most regions except for the East and West Midlands and Inner London.
Average asking prices at original instruction have risen by 2.8 per cent in the last year and 24 per cent since 2019, while exchanged prices reflect similar numbers having grown to 3.8 per cent over the course of the last year and 22 per cent since 2019.
The volumes of fall throughs seen since the mini-Budget are now tailing off to similar levels seen in 2019.
Time to sell an average property is currently sitting at around 61 days which has increased compared with the previous year, however, it’s an 18 per cent reduction on 2019’s level of 75 days.
For a property priced at £200,000 or less, the time to sell is 55 days. Scotland is currently the fastest place to sell at 45 days. Inner London is the longest at 83 days.
Colin Bradshow, chief executive of TwentyCi - parent firm of TwentyEA - says: “Buyer demand is reassuringly resilient despite the economic headwinds of interest rate rises and inflation, while keen sellers are proving determined and are pressing on with their moves. Deals are still being struck, albeit at a lower level than this time last year. However, that was an exceptional market and one of the busiest since records began.
“Although mortgage rates and the pace of inflation remain unsettled, the market is performing well, all things considered. While there remains a shortage of lower priced stock, all price brackets have seen some improvement in terms of available properties, with the higher price brackets above £350,000 now fully replenished. Average asking prices are still rising and transaction prices are holding steady.
“These signals demonstrate resilience and reveal how speculation around the extent of the market’s decline may have been overstated.”