Homebuyers are gaining greater negotiating power as most properties continue to sell below their asking prices. According to Propertymark’s latest Housing Insight report, 86% of estate agents said homes sold for less than their advertised price in August, while only 9% reported sales at the full asking price.
The figures point to a more challenging market for sellers, with buyer demand softening, viewings declining and the number of properties available for sale increasing. As purchasers have more homes to choose from, sellers may need to adjust their expectations to secure a deal.
More Properties Available as Buyer Interest Falls
Propertymark recorded an average of 69 prospective buyers registering with member branches in August, alongside just 1.7 viewings per property on the market.
At the same time, the average number of homes available for sale rose to 51 per branch. New properties coming onto the market remained fairly stable at 10.8 per branch, with agents carrying out an average of 30 property appraisals.
Despite weaker demand, agreed sales increased slightly to 9.5 per branch. This suggests that buyers are still making purchases, although they are taking a more selective approach and paying closer attention to value.
With more properties competing for attention, sellers may find it harder to attract offers unless their homes are priced in line with current market conditions.
Sales Continue to Face Lengthy Delays
The time required to complete property transactions remains a challenge. Almost 32% of Propertymark members said most of their agreed sales took more than 17 weeks to reach the exchange of contracts stage.
Extended timelines can create uncertainty for both parties and leave property chains vulnerable to delays or collapse.
Nathan Emerson, chief executive of Propertymark, said the market remained active, but progress was uneven. He highlighted the growing difference between the prices sellers hope to achieve and what buyers are willing or able to pay.
Emerson also stressed that agreeing a sale is only one part of the process. Long waits before contracts are exchanged can leave buyers and sellers uncertain about whether their transactions will proceed as planned.
Rental Demand Remains High Despite Longer Voids
The rental market continues to experience strong tenant demand, although finding a suitable property does not always lead to an immediate tenancy.
Propertymark members reported an average of 121 prospective tenants registering per branch in August, compared with 12.86 rental properties available. This equates to approximately ten prospective tenants for every available home.
However, new fully managed rental instructions fell to an average of 2.97 per branch. The number of agreed tenancies edged up to 9.92, while average void periods approached four weeks.
These figures indicate that demand remains high overall, but individual landlords may still face delays in finding tenants for their properties.
Office for National Statistics figures showed that average UK private rents rose by 3.8% over the year to August and increased by 0.5% compared with the previous month. Average monthly rents reached £1,459 in England, £1,013 in Scotland and £846 in Wales.
Among Propertymark members, 59% said rents had remained broadly stable, while 33% reported increases and 6% recorded falls. Rental arrears on fully managed properties also declined to 2.7%.
Realistic Pricing Becomes More Important for Sellers
As buyers become more selective, estate agents face increasing pressure to help sellers understand what their properties are realistically worth in the current market.
Emerson said effective negotiation, accurate pricing and knowledge of local conditions were becoming increasingly important as the gap between seller expectations and buyer affordability widened.
He also highlighted ongoing concerns about the supply of rental homes, noting that landlords were becoming more cautious about their decisions to remain in the market.
Phil Spencer, founder of Move iQ, similarly emphasised the importance of pricing and presentation. Sellers can no longer rely on competing offers to drive up a property’s value, particularly when buyers are scrutinising prices more closely.
Setting an appropriate asking price from the beginning may therefore help sellers attract serious interest and avoid repeated reductions later.
With more homes available and fewer viewings taking place, buyers appear to have greater scope to negotiate. Sellers who respond to changing market conditions may be better placed to secure a sale without unnecessary delays.
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