Propertymark: ‘Buyers are waiting for election and interest rate movements'

Agency sales supply and demand dipped in May as buyers and sellers await the election outcome, Propertymark members claim.

The agency trade body’s latest Housing Insight Report found the average number of new prospective buyers registered per branch decreased from 88 in April 2024 to 74 in May 2024, while new instructions and appraisals also fell.

New supply, as measured by new sales instructions, decreased slightly on the previous month to around 11 homes for sale per member branch in May 2024, while market appraisal volumes decreased from 26 to 24.

The average number of sales agreed per branch was up though, Propertymark said, while the gap between asking prices and market expectations continues to narrow “but remains significant.”

Nathan Emerson, chief executive of Propertymark, said: “After a flurry of activity last month, there has been a shift in key metrics including a reduction in prospective buyer registrations and viewing numbers. However, this is in line with expectations/established seasonal trends, with consumer attention beginning to shift from housing to holidays. 

“On a positive note, the number of sales agreed increased marginally suggesting that the market remains dynamic. The good news for buyers is that the gap between asking prices and market expectations continues to narrow and stock levels continue to increase. With pricing and availability improving, now is a great time to enact moving plans.

“Despite this, some buyers are hedging their bets, awaiting the outcome of the general election and movements in the base rate. However, elongating exchange times suggest that buyers should not delay if they want to move in 2024.”