Market softens following economic and political turmoil
Recent figures indicate a shift in the sales market, hinting at a potential return of purchasing power to buyers, a trend not observed in several months.
On the lettings front, there has been a slight decrease in the number of prospective tenants registered per branch due to the ongoing issue of insufficient supply.
Sales
In October, the number of new applicants registering per member branch and the number of viewings per branch showed a slight decline compared to September. Additionally, the number of new properties put up for sale also dipped. The rise in average two-year fixed mortgage rates, caused by Truss' economic policies, contributed to a decrease in demand.
As uncertainty loomed with the appointment of a new Prime Minister and Chancellor and statements from the Bank of England about base rates, it's not surprising that the number of people looking to sell their properties also decreased during this period. However, industry professionals are hopeful for increased activity in November.
Demand from house hunters softens
Demand from potential buyers softened, with the number of new buyers registering per member branch dropping to 64 in October, down from 83 the previous month. Nevertheless, this figure is still close to last October's number of 67, representing only a 5% year-on-year decrease.
Lettings
Pressure on rents easing
Pressure on rents has eased with the average number of new prospective tenants registered per member branch in October decreasing by 42% compared to the previous month. This reduction in demand is expected to alleviate pressure on rents, as fewer agents reported month-on-month rent price increases.
In October, an average of 85 new applicants were registered per member branch, marking a significant decrease from last month's high of 147 (a 42% drop). However, this number remains above the pre-pandemic average for October of 72 (2018-2019).
