Estate agents are warning that overpriced homes are taking longer to sell as buyers become increasingly selective in a slowing property market. Nick Leeming, chairman of Jackson-Stops, said properties priced in line with recent comparable sales continue to attract interest, while sellers with unrealistic expectations face a longer wait.
Market slowdown reflected in ONS figures
His comments follow the latest Office for National Statistics (ONS) figures, which show annual UK house price growth slowed to 0.9% in August, down from 1.2% in July. This marks the weakest annual growth since March, with the average UK property valued at £273,000.
London continues to underperform, recording an annual price fall of 2.2%, while flats in the capital suffered a sharper decline of 5%.
Leeming said: “The latest figures reinforce how finely balanced the housing market remains. There is still an appetite to move, but buyers have considerable choice and are scrutinising value carefully.
“Properties brought to market in line with recent comparable sales are attracting serious interest, while those that begin with overly ambitious expectations are taking longer to find a buyer.”
Zoopla reports fewer sales ahead of Budget
Richard Donnell, executive director of research at Zoopla, said higher mortgage rates and uncertainty ahead of next week’s Budget were affecting buyer activity.
“House price inflation is slowing as higher mortgage rates hit buyer enquiries and the number of sales agreed. Zoopla data shows that there are fewer sales right across the country as homebuyers adopt a wait-and-see approach ahead of next week’s Budget.
“Homes that sell are doing so almost as quickly as last year, but buyers are becoming more selective, particularly when homes are not well presented or priced unrealistically for what buyers are willing to pay.
“There are serious buyers in the market but it’s essential to speak to an agent to understand how to reach them.”
Budget uncertainty adds to market pressures
Leeming also raised concerns about speculation over property tax changes ahead of the Autumn Budget. Reports suggesting the government could lower the threshold for a proposed high-value council tax surcharge to £1.5m have added to uncertainty at the upper end of the market.
He said: “As we look ahead to the Budget, clarity and stability will be essential. We hope speculation about changes to property taxation does not again delay decisions in higher-value markets.”
Leeming welcomed the potential benefits of the proposed Your First Home scheme but warned that support for first-time buyers alone would not resolve wider market challenges. “Today’s first-time buyers will become tomorrow’s second-steppers, so the Budget must support a housing market that works at every stage of people’s lives.”
Industry calls for action
Stacy Eden, national head of real estate at RSM UK, said the figures strengthened the case for measures to stimulate housing market activity. “Today’s data shows a continuation of a clear and concerning trend in the UK housing market, with prices having flatlined on a national level.”
Eden highlighted stamp duty, mortgage costs and weakness in London’s flat market as continuing obstacles. Mortgage approvals for house purchases fell to 54,900 in August, below the previous six-month average of 60,100.
Meanwhile, Nathan Emerson, chief executive of Propertymark, said house prices continued to demonstrate resilience across many regions despite affordability pressures. He warned that Budget announcements could influence decisions among prospective buyers and sellers.
“With the upcoming Budget only weeks away, attention is turning to what measures the UK Government may announce to support the housing market. Any changes could influence the decisions of those considering buying or selling a home,” he said.
For estate agents, the immediate challenge remains managing seller expectations in a market where buyers have greater choice and pricing increasingly determines whether a property attracts offers.
