OnTheMarket: Agency stock has hit its highest level in a year

Agency stock has reached its highest level for 12 months, OnTheMarket claims.

The portal’s latest Property Sentiment Index revealed that there has been a consistent week-on-week increase in stock since February, with the highest level of available properties going live in July compared with any time in the previous 12 months.

Jason Tebb, chief executive of OnTheMarket, suggested this was a sign of a return to a “seasonally-driven market.”

He said: “With seasonal effects coming into play this summer, there may be fewer active buyers as people are more inclined to take a holiday than has been the case over the past two years. With buyers potentially spending time away from their housing market searches, this may have the knock-on effect of stock levels continuing to improve.”

The research found that 57% of properties listed on the portal were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 56% in July 2021.

Despite the rising cost of living, the data shows that sentiment was largely unchanged in July. 

Serious buyers remained committed, with 75% confident that they’d successfully purchase a property within the next three months, the same percentage as in June and May. 

Meanwhile, 80% of sellers were confident that they could complete a sale within the same time frame, falling only slightly from 81% in June and 82% in May. 

Seller confidence in London fell by nine percentage points in July when compared to June with 76% of sellers confident they’d sell their property within the next three months, according to the research.

Tebb added: “As there’s now more stock available on the market for buyers to choose from, sellers in this region may be less confident of their homes selling as quickly as they might’ve done previously.

“In addition, as activity could start to slow down in the coming months due to the re-emergence of more seasonal norms and people holidaying more during this period, a drop in seller confidence in London would be in line with the idea that more buyers may take time away from their property search as the market becomes more seasonally-driven.”

He added that the political uncertainty caused by the Tory leadership race also isn’t hitting the market yet.

Tebb said: “It seems as though political events are not affecting confidence, with vendors continuing to put their homes on the market regardless. 

“Buyers may also be motivated by rising interest rates as the Bank of England attempts to bring inflation under control.
They may feel they need to secure a mortgage and make their purchase now, while rates are still relatively manageable and before affordability is squeezed further. 

“Despite rising rates, it is still a relatively cheap time to borrow money; in a few months’ time, the picture could be very different. 

“With sellers remaining confident despite summer holidays and political upheaval, and buyers keen to secure mortgage rates before they edge out of reach, all signs point to a housing market that is ticking along, albeit with the return of seasonal norms.