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

Overpricing Leaves 44% of UK Homes Unsold Over Three Years

Nearly half of all homes listed for sale in Britain over the past three years have not found a buyer, according to data from Zoopla. Estate agents attribute this stagnation to sellers setting asking prices based on pandemic-era valuations, despite significant changes in the market.

Zoopla's figures reveal that 44% of listed homes across Britain remained unsold during the three-year period. The market has been adjusting to post-pandemic conditions, with increased supply levels and a shift away from the high demand seen in 2021 and 2022.

Josh Endacott, an estate agent at London-based 1st Avenue, identified pricing strategy as a primary factor behind the slowdown. Endacott noted that many sellers continue to use valuations from the pandemic housing boom, even though the market has since shifted.

Rightmove data shows that housing stock available for sale has reached its highest level since 2014. This has led to increased competition among sellers and strengthened the negotiating position of buyers. At the same time, transaction volumes have declined, with a 10.4% fall in June across all UK regions.

Endacott highlighted that the first four weeks of any property listing are critical, as this is when buyer interest is at its highest. Properties that remain on the market for extended periods can develop a negative perception among potential buyers, who may question why the property has not attracted offers.

The report also notes that many homeowners base their asking prices on personal financial requirements or on comparable sales from the market peak, rather than current demand levels. This approach can result in prolonged selling periods and eventual price reductions.

The data suggests that sellers now face a fundamentally different environment compared to the pandemic period. With higher inventory levels and buyers being more selective, pricing strategy has become a key factor in achieving a sale. The findings highlight the ongoing adjustment in the UK housing market as it transitions to a more balanced supply-and-demand dynamic.