Prospective buyer numbers continue to fall: Propertymark

Despite some optimism creeping into the economy, market conditions remain challenging within the housing sector, according to the latest research from Propertymark.

Last month saw a slight reduction in the average number of new prospective buyers registered per estate agency branch. The trend continues this month, which is down to 53 in October 2023, from 60 in September and 81 in August. However, the longer time series confirms the re-emergence of seasonals trends, with a corresponding downturn seen in 2022 in the run up to the festive period.

The average number of viewings per property remained static across August, September and October 2023. However, Propertymark says the longer time series shows a "concerning downward trend".

The number of new homes placed for sale per member branch has decreased again this month with nine properties available on average per branch in October 2023, compared with 11 in September and 13 in August. Propertymark expects this trend to continue as we enter the festive season, and the market begins to cool.

Given the emergence of seasonal trends, the average stock of properties available for sale per member branch decreased from 45 in August to 39 in September and 37 in October.

The number of sales agreed per member branch has decreased to seven in October 2023 from eight in September, but sits firmly in the range (6-8) that has been prevalent over the last 10 months.

The number of agents reporting that properties were selling for less than asking price has risen dramatically from 76% in September to 90% in October 2023.

The time taken to exchange contracts continues to elongate. Estate agents reported that 75% of transaction had taken 13 weeks or longer to complete in October, with 31% having taken 17 weeks or more.

Nathan Emerson, Propertymark CEO, said: "The Autumn statement had an upbeat feel and yielded some positive news for the housing industry. However, this is no time to celebrate. The cost-of-living crisis continues to limp on, and the International Monetary Fund forecast that the UKs growth will be the slowest in the G7, whilst its inflation will be the highest.

"The resultant uncertainty continues to impact the housing market. In the residential sales sector, interest rates remain high, causing first time buyers and movers to think twice. This is evidenced by the number of prospective buyers registering at our member branches falling and the number of market appraisals being undertaken trending downwards."