Housing market in a "cooling phase" as supply and demand drop: Propertymark

November saw a further cooling of the residential housing market, with a 14% decrease in the number of properties available for sale, the latest Propertymark data shows.

There were on average just 6 new homes placed for sale per member branch in November, a 26% drop on October’s figure. Supply has decreased month-on-month since August 2023 and although seasonal trends are evident, Propertymark says the market is "clearly in a cooling phase", predicting a further seasonal fall in December.

November also recorded a 6% decrease in the number of buyers registered. Market conditions remain challenging with the average number of new prospective buyers registered per branch continuing to decline. The number of registrations reduced from 53 in October to 49 in November. Whilst exacerbated by seasonal factors, Propertymark added that "a downward trend has been evident for some time".

The number of sales agreed per member branch decreased again in November 2023. Whilst seasonal patterns explain this trend, the year-to-date performance in 2023 is lower than in either 2021 or 2022.

Nathan Emerson, CEO of Propertymark, commented: "Economic uncertainty continues to pervade the UK economy and housing markets. In the residential sales sector, seasonal trends are undoubtedly weighing on market performance. However, there are also strong indications that the market is cooling in general.

"Demand, as measured by new buyer registrations, is trending downwards and though offset by a reduction in existing stock levels and new supply, price pressures are increasing. This is evidenced by the majority of members reporting that properties continue to sell for less than asking price.

"Looking forward to December, we are likely to see the entrenchment of seasonal trends as we head towards the end of 2024."