A property report by NAEA Propertymark indicates a growing demand in the property market for both buyers and sellers once more
A 16% rise in property hunters registered per estate agent branch was reported with 307 new house hunters registered compared to 265 previously.
This is the highest number registered since September 2018 which saw 338 house hunters register and the supply for housing is at its highest level since December 2018, going from 35 properties per member in April to 41 properties in May.
Mark Hayward, chief executive of NAEA Propertymark, said: ‘It is encouraging to see the housing market bouncing back, with supply and demand rising to the highest levels seen since last year. It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country.’
However, the overall demand is still down by 13% from May 2018 where there were 351 registered house hunters per branch.
Despite this, there are small increases from last year with property transactions increasing since May of last year. May 2019 saw a rise in property sales per branch for the second month running and is at its highest level since September of last year.
With high demand and growing supply, London properties provide a good indication of how the housing market is fairing.
With London’s slow and declining house price growth, there has been a 6.3% increase in demand from buyers as of February 2019, according to research by Knight Frank Estate Agents.
This demand is backed up by an increase of offers on properties by 7.5% in the year to February 2019.
Tom Bill, head of London residential research at Knight Frank said: “Although activity levels have fallen due to political uncertainty, underlying demand has strengthened as potential buyers respond to price adjustments.”
Keep in mind that this political uncertainty referred to the original Brexit leaving date of Friday 29th March 2019 and there was still a growth in demand as the deadline loomed. That appears to have carried on into the rest of the year so far across the whole of the UK when referenced with the NAEA Propertymark figures.
Buyers and sellers willing to compromise
With 81% of properties sold under the asking price in May, it is an indication that buyers are relishing the prospect of buying a property at a slightly reduced price while sellers are happier to sell anticipating that they are getting a good deal despite selling a property for slightly less.
The rise in demand still grows quicker than the rate of new supply so house prices haven’t been affected too drastically in this time and 5% of houses actually sold over the asking price in May so there is good news for buyers and sellers.
Patrick Alvarado, director of central London estate agency Nicolas Van Patrick, said: ‘There is still a scarcity of stock on the market and certainly not enough to meet all the pent-up demand.
‘But with buyers starting to transact again, if you have a good property priced at the right level you will sell it, and if it is really good it may even go to sealed bids.’