Sellers warned against market over-optimism as properties sell for 77% of their asking price
UK home sellers are facing significantly longer waiting times to secure buyers, with new research revealing a 19.5 per cent increase in the average selling period over the past year.
Data from property information provider Moverly shows that sellers now wait an average of 64.4 days to find a buyer, up from 53.9 days in the previous period.
This substantial increase comes despite generally improving market conditions, suggesting sellers need to exercise caution with their pricing strategies.
The research indicates that whilst asking prices have remained largely static, with a marginal 0.2 per cent increase from £366,881 to £367,572 over the past year, the extended selling times point to a shifting market dynamic.
Properties are continuing to achieve around 77 per cent of their asking prices, as buyers navigate the ongoing challenges of high mortgage costs, the experts stated.
It’s not all bad news, however. Despite the extended selling times, the UK housing market has shown positive indicators throughout 2024. Monthly mortgage approvals have demonstrated consistent growth, surpassing 60,000 in February.
This upward trend continued throughout the year, reaching a significant milestone in October with 68,303 approvals – marking a two-year high.
However, these encouraging signs have not translated into faster property sales, suggesting a more complex market dynamic at play. The disconnect between rising mortgage approvals and longer selling times indicates that while buyer interest is increasing, there remains a careful balance in the market.
This pattern reflects a more measured approach from buyers, who are taking their time to make purchasing decisions despite having mortgage approval in place. The extended selling times can be attributed to a significant increase in available housing stock across the market.
In England alone, property listings have risen by nearly 14 per cent over the last year, reaching a total of 846,455 homes for sale. This abundance of available properties has created what industry experts describe as a “buyers’ market”, where purchasers hold more negotiating power than sellers.
Despite the increase in buyer demand, the substantial inventory of homes for sale means there is ample choice for prospective buyers.
This marks a notable shift from recent years, when multiple buyers would often compete for individual properties.
The current market conditions suggest sellers may need to adjust their expectations, particularly as asking prices have remained steady despite the changing dynamics.
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Moverly CEO Gemma Young said: “The housing market is heading in the right direction, and given all of the economic headwinds that we have battled against over the past year, the market has shown great resilience.
“But as of now, we’re still in a situation where stock outweighs demand, and as such sellers might want to be careful not to assume that they will achieve a quick sale or a particularly high price at this moment in time.
“So far, rising buyer demand has more or less been met by healthy stock levels, so our advice to sellers is to remain optimistic, but also be patient. However, sellers and their agents can take simple measures to facilitate a faster process.
“The chance of getting a fast sale – and thus securing a good price – can be increased by providing potential buyers with upfront material information on a property as soon as they express an interest. This means they don’t have to go looking for it and there’s less risk of them discovering something unexpected later down the line.
“In addition, agents and sellers going that step further and completing their legal forms upfront have a better chance of locking in their buyers at the offer stage and reducing the time it takes to get to completion.”