Rightmove report that steadfast buyers are highly committed to getting a sale completed in the current market. The percentage of sales agreed that have fallen through this year is the lowest since 2015.
This is despite the number of sellers coming to market being down by 13.5% compared to this time last year. Sluggish prices and Brexit developments appear to put off some speculative sellers, but buyers remain undeterred as the number of sales agreed is virtually unchanged (-0.5%) on the same period a year ago.
Rightmove’s property expert Miles Shipside said: “In a strange Brexit-induced paradox, thousands of potential sellers are holding back compared to this time a year ago, though the number of buyers agreeing purchases is virtually the same. Ironically, this means that those who are coming to market have a better chance of selling, so while some would-be sellers are being put off, it’s actually a good time to sell.”
The ongoing uncertainty surrounding Brexit evidently continues to cause many sellers to hesitate and sit tight, however, there is a healthy level of sales still transacting.
Henry Knight, Managing Director of Springtide Capital commented:
“In such a price sensitive market, only the serious home buyers and sellers are deciding to take the plunge. With a reduced number of less committed parties, we have seen a reduction in the number of sales falling through, which is a definite positive to take from the current climate.”
UK yet to experience ‘Autumn bounce’
Rightmove’s data scientists have seen a smaller than usual Autumn price bounce (the annual increase in house prices between the slower summer and Christmas periods). The price of property coming to the market at this time of year usually experiences this Autumn bounce, with an average rise of 1.6% in the month of October over the last ten years. The price of property coming to market is seeing its lowest monthly rise at this time of year since October 2008, up by just 0.6% (+£1,942).
Nick Leeming, chairman of Jackson-Stops, said: ‘Although the UK is yet to experience an autumn bounce it doesn’t mean one isn’t on its way. The data shows that sales aren’t falling through as regularly as they have been, which suggests that the market is currently being driven by must-movers.’
Rightmove reports that there were 29.2% fewer new sellers than same period a year ago, deterred from trying to sell by continuing year-on-year price falls and short-term Brexit uncertainty. The number of sales agreed is up 0.8% on this time last year, indicating the commitment of serious movers in this market.
With buyer activity holding steady, it highlights that those who are buying are committed and focused on making transactions go through, a positive for those who have come to market and are serious about selling.
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