The UK property market has always been an interesting and ever-changing landscape, and the latest Voice of the Agent report only adds to its mystique. Released by the National Association of Estate Agents (NAEA) Propertymark, the report reveals a market that is active but cautious.
The Voice of the Agent report surveys NAEA Propertymark members – reputable estate agents who have their finger on the pulse of the property market – to get an accurate depiction of what’s happening in the industry. And according to the latest findings, the UK housing market is showing promising signs of growth, but buyers and sellers remain cautious in light of political and economic uncertainties.
One of the most notable takeaways from the report is the increase in property sales. The number of sales made per branch in July reached the highest level of any July since NAEA Propertymark started recording the data, with an average of 13 sales per branch. This shows that there is a strong demand for properties in the UK, and buyers are eager to make their move.
The report also highlights a steady market in terms of supply, with the number of properties available for sale remaining the same from June to July, with an average of 37 properties per branch. However, this is significantly lower than the 41 properties per branch last year. This implies that sellers are still uncertain about putting their properties on the market, perhaps in fear of not being able to find a suitable replacement in a timely manner.
Despite the active market, the report also reveals a sense of caution among both buyers and sellers. Many buyers seem to be taking a “wait and see” approach, waiting to make a move until there is more clarity on Brexit and the overall state of the economy. On the other hand, sellers are being cautious with their asking prices, with only 19% of properties sold for more than the original asking price in July.
Mark Hayward, Chief Executive of NAEA Propertymark, comments on this cautious sentiment, saying, “It’s clear buyers and sellers are still feeling cautious and are making a conscious decision to wait until the uncertainty has passed before making any significant financial decisions. That said, it’s interesting to see a higher percentage of properties selling for over the asking price than in June, indicating that people are willing to pay a slightly higher price for their dream property.”
Another key factor affecting the housing market is the issue of stamp duty. The report highlights that 51% of properties sold in July were sold for less than the original asking price, suggesting that the government’s recent stamp duty changes have not had the desired effect of increasing property prices.
Despite these cautionary attitudes, the report also reveals positive news for first-time buyers. The number of sales made to first-time buyers reached the highest level of any July in the last five years, with an average of 28% of total sales. This shows that the government’s initiatives to help first-time buyers, such as the Help to Buy scheme and abolishing stamp duty for properties under £300,000, have had a positive impact on the market.
In conclusion, the latest Voice of the Agent report shows a UK property market that is active but cautious. With a steady increase in property sales and a strong demand from buyers, it’s a promising time for the industry. However, the uncertain political and economic climate is still causing a sense of hesitation among both buyers and sellers. As we look towards the future, it’s important for all stakeholders to remain optimistic and be mindful of the potential challenges ahead, while also recognizing the positive trends in the market. Only time will tell what lies ahead for the UK property market, but for now, cautious optimism seems to be the prevailing sentiment.