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

Calls for Government Action as UK Property Market Faces Stagnation

A month after the new Prime Minister took office, concerns have been raised about the lack of government measures to support the UK property market. The government has ruled out scrapping stamp duty this year and has distanced itself from introducing a land value tax, but industry voices warn that more decisive action is needed.

Recent commentary highlights that the UK housing market is experiencing significant delays and challenges. According to Connells Group, the average time from a sale being agreed to exchange of contracts is now 104 days, compared to 73 days a decade ago. For leasehold properties, this figure rises to 155 days, while freehold properties average 97 days. Additionally, one in three deals collapses before reaching exchange.

In April, 61% of property deals reportedly took longer to reach exchange after a sale was agreed than it took to find a buyer. These delays are contributing to increased pressure on estate agents and others involved in the transaction process.

The report identifies two main issues affecting the market. In the second-hand sector, there is a 12-year high in supply, but many properties are not selling due to a gap between vendor expectations and what buyers are willing to pay. In contrast, the new-build sector is facing a shortage, with fewer planning permissions granted last year than at almost any point since 2013, leading to a slowdown in new housing starts.

The article argues that property transactions are vital for stimulating the wider economy, as each sale generates spending on home improvements, furnishings, and services. The commentary calls for the government to take further action, including scrapping the land value tax proposal permanently and setting out a plan to remove stamp duty on primary residences.

These issues are particularly relevant for letting agents and inventory clerks, as market stagnation and transaction delays can impact rental supply, property management, and the overall pace of business in the sector.