New research shows that estate agents’ greatest concern for sellers in 2023 is that many will be unrealistic in terms of price achievable for their property this year, amid a marked slowdown in the UK housing market.
Towards the end of 2022, some agents found that ongoing weakness in the property market highlighted a gap between buyer and seller price expectations, with 71% expressing concern that this trend will continue this year.
The study, carried out by Propertymark, also found that 48% of agents were concerned about increasing conveyancing times, while 41% were worried about the impact of sales falling through on their vendors.
The report, which looked to identify concerns and opportunities for buyers, renters, sellers, and investors in 2023 as well as analysing market trends, also reflected on the housing market in 2022.
It reveals that in the sales market, the average number of viewings per property fell across the year from April to December by 71%. As one estate agent put it, ‘the cappuccino market days are over. We’re now in espresso times where only serious buyers are out looking for property’. This is because many buyers have decided upon a wait and see approach to the current economic turmoil.
Propertymark says that member branches have seen a fairly steady stream of new instructions on average over the year, with traditional dips in December (no change year on year from 2021 to 2022).
At the same time, the total number of properties for sale has steadily risen over the year.
This is due to a divergence between new property instructions and numbers of homes sold primarily over the second half of 2022. Propertymark did note a small drop in the total number of properties available for sale in December 2022.
Nathan Emerson, CEO of Propertymark, commented: “The largest shift over 2022 for the sales market is in prices agreed compared to initial asking prices. Starting 2022 in a sellers’ market and ending the year back in the longer term normal of a buyers’ market. The seller’s market seen is unprecedented in our data which stretches back to 2013.
“As for lettings, a rising population and a lack of adequate housing construction has led us to a peak of demand from home hunters looking to rent in 2022. With such a mismatch in demand and supply, it is no surprise that rents have risen most keenly in 2022.”
Last year also saw peak numbers of prospective tenants registering in Propertymark’s data with a new monthly record set in September at 147 new prospective tenants per member branch. Demand for rental property has grown by 57% since 2018, when Propertymark records began. At the same time, there was no growth in the size of the private rented sector (PRS) to house these tenants.
As part of its annual report, Propertymark also asked member agents to inform them of their biggest concerns for their customers and for agents in both lettings and sales in the coming year.
