Housing demand reaches highest level reported in 16 years

HOUSING REPORT: Our September report shows that an average of 14 sales were agreed per branch; this is the highest figure we've recorded since August 2006.

This is also a rise from eight per cent in July, and ten per cent in June. However, the report shows the majority (53 per cent) of properties sold for less than the original asking price.

Sales

Year-on-year, the number of sales agreed per branch has increased by 75 per cent, rising from eight in September 2019.

Although eight per cent of properties sold for over the asking price, the majority (53 per cent) of properties sold for less than asking in September.

Despite the number of sales to first-time buyers (FTBs) falling by 19 per cent, the lowest recorded in seven years, the average number of sales agreed per estate agent branch stood at 14 in September. September’s figures show this is an increase from 12 sales agreed per branch in August, and also represent the highest figures recorded since August 2006.

Supply and demand

Rising marginally from 40 in August, the number of properties available per member branch in September, stood at 41.

Year-on-year, the supply of housing also increased slightly from 40 properties available per member branch in September 2019.

Buyers and sellers always tend to flood the housing market in September with the hope of completing their transactions before the festive period kicks off. However, the pressure of completing sales ahead of the stamp duty holiday deadline means we’ve seen a large spike in buyers and sellers coming to the market – with an average of 13 buyers to every available property.

This boom has been hugely beneficial for the housing market; however, with a stamp duty cliff edge on 31 March, we are calling on Government to rethink these timings due to the increased pressure on service providers within the industry which is causing delays for buyers and sellers. Failure to find a solution to the cliff edge, whether that be a taper or extension, could cause thousands of sales to fall at the final hurdle and have a knock-on and drastic effect on the housing market which has recovered well from the COVID slump.

Mark Hayward Chief Executive | NAEA Propertymark
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