Rise in housing stock lowers sale prices

An increase in housing supply has resulted in two-thirds of homes selling for less than their asking price in July, new figures reveal.

The National Association of Estate Agents reports an 11 per cent increase in the average number of properties for sale per branch in July – rising from 46 to 51 – the biggest increase in three years. At the same time, the average number of buyer registrations per branch dipped slightly from 371 in June to 368 in July – the fourth consecutive monthly decline.

Sixty-six per cent of homes that were sold in July failed to meet their asking price as a result of growing supply and declining buyer registrations. Just 1 in 25 homes sold for more than their asking price.

The NAEA says the increase in housing supply and declining buyer numbers could be a “direct result of high stamp duty rates faced by many potential buyers”. 

The research found that 92 per cent of NAEA members believe the Government should reform the structure of UK stamp duty.

NAEA managing director Mark Hayward says: “The sign of increasing stock is positive for the market and housebuyers in search of their ideal home, as are the recent reports suggesting house prices are on the decline. 

“Our NAEA report has found similar with a significant amount of homes being sold at less than the asking price.”

Online property agent Rightmove reported a 2.9 per cent decline in UK asking prices in August and a 5.9 per cent decline in London asking prices.