Buyers are gaining the upper hand in the housing market, with 86% of estate agents reporting that properties sold below asking price in August, according to new figures from Propertymark. The trade body's latest Housing Insight report shows purchasers are increasingly cautious, viewings are falling, and sellers face growing pressure to price realistically.
Just 9% of member agents reported properties achieving their asking price. The findings come as available housing stock continues to rise, giving buyers more choice and greater scope to negotiate.
Buyer demand weakens as stock increases
The average number of prospective buyers registering with Propertymark member branches fell to 69 in August. Viewings also declined, with agents recording an average of 1.7 per available property. Meanwhile, the number of homes available for sale increased to an average of 51 per branch.
New instructions remained relatively steady at 10.8 properties per branch, while agents conducted an average of 30 market appraisals. Despite weaker buyer interest, agreed sales edged upwards to 9.5 per branch. The figures suggest transactions are still progressing, but buyers are becoming more selective.
Almost a third of agents report lengthy sales delays
Transaction times remain another concern for estate agents. Almost 32% of Propertymark members reported that most of their agreed sales took more than 17 weeks to reach exchange of contracts. The delays leave chains exposed to disruption and increase uncertainty for buyers and sellers.
Nathan Emerson, chief executive of Propertymark, said: “August’s figures show a housing market that is functioning, but where momentum remains uneven. The key issue for the industry is not a lack of activity, but the gap between what buyers are prepared to pay and what sellers are willing to accept.”
He added: “Transaction timescales also remain a concern. A sale being agreed is only one milestone, and prolonged periods before exchange can create uncertainty for buyers and sellers and leave chains vulnerable to disruption.”
Rental demand surges despite longer void periods
The lettings market presents a different picture, with tenant demand continuing to outstrip available supply. The average number of prospective tenants registering with member branches rose to 121 in August. Agents had an average of 12.86 rental properties available, equivalent to roughly ten prospective tenants per property.
However, new fully managed instructions fell to 2.97 per branch. The average number of tenancies agreed increased slightly to 9.92, while void periods lengthened to almost four weeks. The figures suggest that strong overall tenant demand is not translating into immediate lets for every property.
Official ONS data showed average UK rents increased by 3.8% annually and 0.5% month-on-month in August. Average monthly rents stood at £1,459 in England, £1,013 in Scotland and £846 in Wales. Among Propertymark members, 59% reported rents remaining broadly unchanged. A further 33% reported increases, while 6% saw falls. Rental arrears on fully managed properties fell to 2.7%.
Agents face growing pressure to manage expectations
Emerson said agents were increasingly having to bridge the gap between seller expectations and buyer affordability. “With more properties requiring negotiation, realistic pricing and strong local market knowledge are becoming increasingly important for agents managing expectations on both sides.”
He also warned that rental supply remained a concern. “Tenant demand is still placing considerable pressure on the homes available, while landlords are making increasingly careful decisions about whether and how they participate in the market.”
Phil Spencer, founder of Move iQ, said sellers could no longer assume competition would drive offers. “For sellers, the days of simply putting a property on the market and waiting for competition to do the work are not necessarily here. Presentation, pricing and choosing the right moment can make a real difference, particularly when buyers are scrutinising value more closely.”
He added: “A seller who prices realistically from the outset is likely to be in a much stronger position than one who has to make repeated reductions later.”
