November sees record numbers of below asking price sales go through

Warren Lewis
21st December 2017

The latest data from NAEA Propertymark has revealed that during November the number of properties available to buy hit the lowest level seen since January 2016.

According to the data, demand for housing also fell, reaching the lowest level in over a year. However, sales to first-time buyers rose in November.

85% of properties sold for less than the asking price in November, the highest seen since records began in 2013. This is up from 78 per cent in October, and just higher than last November when 84 per cent of properties sold for less than asking price. Only one in ten (12%) properties sold at the original asking price in November, the lowest on record as well.
Supply of properties

The number of properties available to buy on estate agents’ books dropped by 19 per cent from 42 in October, to 34 in November.

This is the lowest number of properties available since January 2016, when 33 properties were available on average per branch.
Demand for housing

Demand from house hunters decreased by five per cent in November to 333, from 349 in October. This is the lowest since September 2016, when the same number was recorded.

Sales agreed and sales to first-time buyers

In November, the proportion of sales made to FTBs rose to 27 per cent, from 22 per cent in October. This is reflective of the higher levels seen in June when 30 per cent of sales were made to the group. The number of sales agreed per branch decreased for the first time since July, from eight per branch in October, to seven in November.
Reaction to the cut in stamp duty for FTBs

33% think the Chancellor’s announcement around Stamp Duty relief for FTBs will not do enough to help FTBs get on the ladder and a further 20 per cent think it will have no impact on the number of FTBs entering the market. Agents would like to see more affordable housing (54 per cent), 100% LTV mortgages (31 per cent) and discounted surveyor’s costs (13%) to help FTBs entering the market.
Mark Hayward, Chief Executive, NAEA Propertymark said: “A record number of properties sold for less than the original asking price last month, but despite this, demand for housing and the number of homes available decreased. We usually see a slow-down in the property market around Christmas time but our November data shows this happened much earlier this year. It’s clear that more and more potential buyers and sellers have put their plans on hold early so they can start afresh next year.”

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