Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
North East tops the regional rankings
The North East has been named the quickest region in England for property transactions to reach exchange, according to analysis by property data company TwentyEA, part of the TwentyCi Group, published in its latest Property & Homemover Report.
Some 58.4% of transactions in the North East progress to exchange within three months. Yorkshire and The Humber follows at 55.6%, then the East Midlands at 50.4%, the West Midlands at 49.9% and the North West at 47.6%. Outer London is the slowest region at 31.1%.
In Scotland, where a separate legal system operates, transactions typically progress more quickly, with 72% of sales agreed reaching exchange within three months.
Price bands: cheaper homes move faster
The report found that lower-priced properties progress to exchange considerably faster than more expensive homes. More than half (54.2%) of transactions below £200,000 reached exchange within three months, compared with 48.4% of properties priced between £200,000 and £350,000, 39.8% for homes between £350,000 and £1 million, and 38.2% for properties worth £1 million or more.
By five months, 75.6% of sub-£200,000 transactions have reached exchange, against 58.3% of £1 million-plus sales. At the slower end, 8.1% of £1 million-plus transactions take seven months or longer to reach exchange — more than double the 3.3% recorded for properties below £200,000.
Nick Huntley, Director of TwentyEA, said lower-priced properties carry their momentum through to exchange more effectively, with a broader pool of buyers and a higher proportion of agile first-time buyers who have no property to sell. He noted that higher-value transactions can be more exposed to changes in financing, affordability and buyer circumstances, alongside additional considerations around original listed features, land boundaries and other complexities associated with upper-end properties.
Freehold versus leasehold
TwentyEA also examined legal tenure. Freehold properties reached exchange considerably faster than leaseholds, with 46.4% of freehold transactions reaching exchange within three months compared with 34.9% of leaseholds. By four months, 59% of freeholds had exchanged against 47.3% of leaseholds — a gap of 11.7 percentage points. By five months, 70.4% of freeholds had progressed to exchange versus 60.4% of leaseholds.
The difference narrows substantially by six months, when 96% of freeholds and 94.3% of leaseholds have reached exchange. Leasehold transactions are also more likely to take seven months or longer, at 5.7% compared with 4% of freeholds.
Huntley said the figures highlight the additional time that can be involved in buying and selling a leasehold property, with more parties and paperwork often at play, which may contribute to the gap in exchange times compared with freehold homes.
What it means for agents and clerks
For letting agents and inventory clerks, the findings show that leasehold and higher-value transactions tend to involve longer timelines, more parties and more paperwork. That is worth factoring into appointment scheduling, check-in planning and managing client expectations.
Source: The Negotiator