Propertymark: Asking prices are too high

The number of agents reporting listings selling for under asking price has hit its highest level this year as Propertymark warns of a mismatch in the market.

The agency trade body’s October Housing Insight report showed 90% of member reported homes selling for below asking price, up from 76% in September and the highest figure this year.

Propertymark said: “This is part of a longer trend (Figure 14), which suggests that valuations and market expectations are severely mismatched. 

The data showed the market remains “challenging,” with the number of sales agreed per member branch decreasing from eight in September to seven in October.

Viewing numbers remained static, Propertymark said.

Its survey found the average number of new prospective buyers registered per branch fell from 60 to 53 between September and October and was down from 81 in August.

Agents are also struggling with supply, the report found.

The number of new homes placed for sale per member branch decreased again during October, with nine properties available on average per branch, compared with 11 in September and 13 in August.

The average number of market appraisals conducted per member branch has also decreased from 25 in August to 20 in September and subsequently 18 in October.

Nathan Emerson, chief executive of Propertymark, said: “The Autumn Statement had an upbeat feel and yielded some positive news for the housing industry. However, this is no time to celebrate. The cost- of-living crisis continues to limp on, and the International Monetary Fund forecast that the UKs growth will be the slowest in the G7, whilst its inflation will be the highest. 

“The resultant uncertainty continues to impact the housing market. In the residential sales sector, interest rates remain high, causing first time buyers and movers to think twice. This is evidenced by the number of prospective buyers registering at our member branches falling and the number of market appraisals being undertaken trending downwards.”