According to the latest report from property agents trade body Propertymark, the UK housing market continues to face challenges as the number of property sales fell, and more homes are
selling below the expected price.
The report indicates a 28% reduction in the number of new properties entering the market last month, coupled with a 31% decrease in the number of registered buyers. The average number of homes placed for sale per estate agency branch in December dropped to five, compared to six in November.
The number of agreed-upon sales also declined, with the report indicating a decrease to just four sales for every estate agency branch in December, down from six the previous month.
This reduced demand has led to a slight increase in the percentage of agents reporting homes selling for less than the asking price. Additionally, there was a minor decrease in the number of agents reporting properties selling at the asking price.
Estate agents described December as a "gloomy" month, but the beginning of 2024 shows a positive shift, with a noticeable increase in the number of buyers registering.
Alex Lyle of estate agents Antony Roberts noted a return to seasonality last year, with December being traditionally quieter. However, the picture has changed at the start of 2024, seeing a significant increase in buyers registering and a surge in activity.
Nathan Emerson, of Propertymark, acknowledged the challenges faced by the property market in 2023, with fluctuating interest rates, inflationary concerns, and modest GDP growth. He mentioned that house prices have fallen in some areas.
The average house price dropped to £301,613 in November, down from £305,148 in October, according to Propertymark. As we head into 2024, Emerson predicts pressures to remain on house prices, with further adjustments needed to align valuations with market expectations.
Looking ahead to January, Propertymark anticipates a lively start to the year, but the overall pace for the entire year will depend on the stability of the wider economy and the actions of policymakers. Nationwide Building Society separately reported a 1.8% year-on-year decrease in house prices at the end of 2023.