86% of Homes Sold Below Asking Price as Buyers Gain Negotiating Power

Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.

86% of Homes Sold Below Asking Price as Buyers Gain Negotiating Power

Propertymark's latest Housing Insight report shows 86% of estate agents reported properties sold below asking price in August, with just 9% achieving their asking price. Buyers are increasingly cautious and sellers face growing pressure to price realistically.

Buyer demand weakens as stock increases

The average number of prospective buyers registering with Propertymark member branches fell to 69 in August, while viewings declined to an average of 1.7 per available property. The number of homes available for sale increased to an average of 51 per branch. New instructions remained relatively steady at 10.8 properties per branch, and agents conducted an average of 30 market appraisals. Despite weaker buyer interest, agreed sales edged upwards to 9.5 per branch.

Transaction delays affect almost a third of agents

Almost 32% of Propertymark members reported that most of their agreed sales took more than 17 weeks to reach exchange of contracts. Nathan Emerson, chief executive of Propertymark, said: "August's figures show a housing market that is functioning, but where momentum remains uneven. The key issue for the industry is not a lack of activity, but the gap between what buyers are prepared to pay and what sellers are willing to accept." He added: "Transaction timescales also remain a concern. A sale being agreed is only one milestone, and prolonged periods before exchange can create uncertainty for buyers and sellers and leave chains vulnerable to disruption."

Lettings: tenant demand outstrips supply

The lettings market presents a different picture. The average number of prospective tenants registering with member branches rose to 121 in August, with agents holding an average of 12.86 rental properties available — roughly ten prospective tenants per property. However, new fully managed instructions fell to 2.97 per branch. The average number of tenancies agreed increased slightly to 9.92, while void periods lengthened to almost four weeks.

Official ONS data showed average UK rents increased by 3.8% annually and 0.5% month-on-month in August. Average monthly rents stood at £1,459 in England, £1,013 in Scotland and £846 in Wales. Among Propertymark members, 59% reported rents remaining broadly unchanged, 33% reported increases and 6% saw falls. Rental arrears on fully managed properties fell to 2.7%.

Emerson said agents were increasingly having to bridge the gap between seller expectations and buyer affordability. "With more properties requiring negotiation, realistic pricing and strong local market knowledge are becoming increasingly important for agents managing expectations on both sides." He also warned that rental supply remained a concern.