Sales agreed at 14-year high for December: NAEA

The number of prospective buyers registered per estate agent branch fell by 41% to 348 in December, down from 580 in November. This is the lowest number recorded since May, when the property market first reopened following the governments’ lockdown. However, it is the highest number recorded for December since 2016.

The number of sales made to first-time buyers stood at 23% in December, falling marginally from 24% in November. Year-on-year, this is a decrease of five percentage points from 29% in December 2019.

The number of properties available per member branch stood at 33 in December, falling from 40 in November.

The data also shows that just 5% of properties sold for more than the original asking price in December, a decrease from November when 10% of properties sold for more than asking price. The majority (67%) of properties sold for less than the original asking price in December.

Mark Hayward, chief policy advisor at NAEA Propertymark, commented: “The number of potential buyers in the market fell significantly in December after Novembers’ record high. While we would ordinarily expect to see a lull over the festive period, these numbers show that the tightening of lockdown restrictions, coupled with the reality that many individuals would no longer meet the stamp duty deadline, has exacerbated this.

“As we approach the stamp duty, LTT and LBTT cliff edges on the 31 March, we are increasingly concerned about the pressure this is placing on the property industry with more than two-thirds (69%) of estate agents expecting to see an increase in failed sales due to buyers realising their sales will not complete ahead of the deadline. It’s important that action is taken now to prevent this and support the property sector.”