The number of homes entering the market is rising while agreed property sales are declining, widening the gap between new listings and completed negotiations. The trend is raising concerns about weakening buyer demand and increasing pressure on sellers to lower their asking prices.
Property data firm Sprift reported that 213,048 homes were listed across Great Britain in September, a 14.8% increase compared with August. Over the same period, agreed sales fell by 16.1% to 89,192, leaving a difference of 123,856 between new listings and sales agreed.
The national sales conversion rate, which measures the proportion of new listings progressing to an agreed sale, dropped to 41.9%. This was a monthly decline of 15.4 percentage points and the lowest figure recorded this year outside December.
From January to August, the conversion rate had remained between 50.2% and 58.5%, making September’s fall particularly significant.
Rising borrowing costs may be contributing to the slowdown. By 1 October, the average two-year fixed mortgage rate had reached 5.93%, while the effective interest rate on newly issued mortgages increased from 4.45% to 4.60%.
Mortgage approvals for house purchases also fell to 54,900 in August, the lowest monthly total since December 2023.
London Struggles While Scotland Leads
Regional figures reveal a considerable difference in how quickly properties are finding buyers.
Scotland recorded the highest sales conversion rate at 69.5%, while London had the lowest at just 27%. The difference between the two regions was 42.5 percentage points.
Six regions recorded conversion rates above the national average, all located in northern England, the Midlands, Wales or Scotland. By contrast, every region in southern England fell below the national figure.
In London, new property listings increased by 28.7% in September, while agreed sales declined by 14.8%. This left a gap of 20,868 between new instructions and sales agreed.
The South East recorded an even larger difference of 23,253. Combined, London and the South East accounted for approximately one-third of Britain’s available housing stock.
Both regions also experienced widespread asking price reductions. In the South East, 43.7% of properties had undergone a price cut, compared with 40.9% in London.
Larger Detached Homes Face Greater Challenges
The slowdown was particularly pronounced among larger detached properties. New listings of detached homes with five or more bedrooms increased by 36.3% in September, but their sales conversion rate fell sharply from 51.7% to 31.9%.
At the other end of the market, two-bedroom bungalows performed more strongly, recording the highest conversion rate of any property type at 61.4%.
The research also highlighted considerable differences in how long homes remained on the market.
Semi-detached properties in Scotland had the shortest average selling period among the regional property categories examined, at 99.3 days. Flats in the North West took considerably longer, averaging 234.5 days on the market.
These figures suggest that property type and location continue to play an important role in determining how quickly sellers can secure a buyer.
Sellers Reduce Asking Prices Earlier
As competition increases and buyer demand weakens, more sellers appear willing to adjust their expectations to attract interest.
The proportion of properties undergoing a price reduction rose from 27.2% to 33.3% in September. By the end of the month, 39.3% of all homes listed for sale had experienced at least one reduction.
Sellers were also cutting prices sooner than before. The average time between a property being listed and its first price change shortened in ten of the 11 regions examined.
In London, this period decreased from 81 to 75 days, while Scottish sellers reduced their asking prices after an average of just 51 days.
Sprift also found that properties whose sales had fallen through were priced below the average for newly listed homes in every region. London recorded the largest difference, with properties involved in failed transactions averaging £662,448, compared with £849,736 for new listings.
Matt Gilpin, founder and chief executive of Sprift, said September demonstrated how quickly market confidence could change. Sellers returned after the summer, but rising borrowing costs prompted many buyers to hold back.
He added that with more properties competing for fewer committed purchasers, realistic pricing had become increasingly important. Estate agents who use market evidence to guide valuations may be better placed to secure instructions that ultimately lead to sales.
Budget and Interest Rate Decision Could Influence Demand
The property market is approaching two important dates: the Budget on 28 October and the Bank of England’s next interest rate decision on 5 November.
Both could affect buyer confidence and mortgage pricing as the market moves towards the end of the year.
For sellers, the latest figures underline the importance of setting realistic asking prices from the outset. With more homes available and fewer sales being agreed, properties that are priced competitively may have a better chance of attracting buyers in an increasingly challenging market.
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