UK Housing Market Report for May 2017

Only Three Per Cent of Properties Being Sold Above Asking Price

  • Demand for housing fell to a six month low in May
  • Supply of available housing and the number of sales agreed per branch rose

What properties sold for

  • Only three per cent of properties sold for more than asking price in May, down four percentage points from April and the lowest level since October
  • The number of homes which sold for less than asking price rose to 77 per cent last month – up five percentage points from April.

Demand for housing

  • The number of house hunters registered per estate agent branch fell by eight per cent last month – from 381 in April to 350 in May. This is unsurprising as political uncertainty ahead of the General Election stalled buyers’ plans
  • However, demand from prospective buyers has risen by 15 per cent since May 2016, when 304 were registered per branch.

Supply of properties

  • The number of properties available to buy rose by 11 per cent last month to 40 per branch
  • This is slightly higher than May 2016 when 37 properties were available to buy per branch.

Sales agreed per branch

  • The number of sales agreed per branch rose from eight in April to 10 in May – the same level seen in March

Mark Hayward, Chief Executive, NAEA Propertymark said: “As a rule of thumb, periods of political uncertainty impact the way buyers and sellers interact with the housing market. In May, it looks like new buyers were stalling their house search until after the election; however the number of sales agreed per branch increased meaning the political landscape hasn’t deterred all house hunters. Following the result of the general election, it will be interesting to see how the market reacts over the coming months as summer is peak house-moving season.”

Read the report