Record 85% of homes now selling below asking price, says NAEA

No fewer than 85 per cent of properties sold for less than the asking price in November, the highest seen since the National Association of Estate Agents records began in 2013.

This is up from 78 per cent in October, and higher than late 2016 when 84 per cent of properties sold for less than asking price.

Only one in eight properties sold at the original asking price in November, the lowest on record as well.

Meanwhile the number of properties available to buy on estate agents’ books dropped by 19 per cent from 42 in October, to 34 in November.

This is the lowest number of properties available since January 2016, when 33 properties were available on average per branch.

Demand from house hunters decreased by five per cent in November to 333, from 349 in October; this is the lowest since September 2016, when the same number was recorded.

However, there was some good news last month as the proportion of sales made to FTBs rose to 27 per cent, from 22 per cent in October.

The number of sales agreed per branch decreased for the first time since July, from eight per branch in October, to seven in November.

“We usually see a slow-down in the property market around Christmas time but our November data shows this happened much earlier this year. It’s clear that more and more potential buyers and sellers have put their plans on hold early so they can start afresh next year” claims Mark Hayward, NAEA Propertymark chief executive.

In addition, the NAEA has asked members for their reaction to the stamp duty cut for first time buyers announced in last month’s Budget.

A third of agents say it will not do enough to help FTBs get on the ladder and a further 20 per cent think it will have no impact on the number of FTBs entering the market.