Homeowners trying to sell their property in recent weeks will have noticed something very odd.
The phones aren’t ringing as much as they used to, viewings are few and far between, and offers just aren’t flowing in.
The property market is gummed up – it is now taking sellers as much as 68 per cent longer than usual to sell their homes in some areas of the country, fresh analysis for Money Mail reveals.
Property portal Zoopla has analysed the number of days it took for a home to sell – from the moment it is advertised on the website to the time it is marked as ‘sold’ or ‘sold subject to contract’ – between April and June compared with the average length over the last five years.
And its findings reveal a plunge in buyer confidence has drastically slowed down markets across the UK – and has particularly hit homes in Devon and along the south coast.
So how long does it take to sell a home in your area – and how can you spur on buyers to snap it up?
PROPERTY MARKET HAS SLOWED
It now takes some 78 days to sell a home, according to property data consultant Twenty EA, up from just 42 days in 2022.
Buyer confidence has plummeted in the past two years as surging mortgage rates and soaring house prices dented affordability.
Just 38 per cent of buyers are confident in the current property market, the Council For Licensed Conveyancers says.
While rates have started to fall, buyers still haven’t been tempted to return to the market.
This will be in large part down to April’s slash to the stamp duty thresholds, which has tempered demand in the past few months as buyers now need to pay thousands more in tax when they buy a new home.
And the housing market is likely to have slowed further since Zoopla’s analysis due to growing concerns over Chancellor Rachel Reeves’s upcoming autumn Budget. House hunters are waiting to see if she has any cruel tricks up her sleeve that will hit homeowners.
Rumours of a fresh tax raid on homeowners have swirled in recent weeks as the Treasury is reportedly considering an overhaul of stamp duty and a brand new property tax.
Plus, there’s a pernicious mansion tax in the running, which could see capital gains tax charged on high value homes and a potential wealth tax. These rumours and a failure by the Treasury to shut them down will likely have dented buyer confidence further.
They have already hit house prices as annual growth has slowed to 2.1 per cent, according to Nationwide – less than the most recent 3.8 per cent inflation figure – which means buyers are holding off making a move until they know more.
Now properties are lying unsold as prospective buyers wait for the Budget before beginning their hunt for a new home.
Buying agent Henry Pryor says: ‘Some 40 per cent of what has sold so far this year had reduced the price once but the really sobering statistic is that only half the homes that go on the market actually sell.
‘Homes are taking longer to sell because it takes time for the penny to drop. Most sellers won’t accept that the market is turning and many agents are too young to have worked in a falling market to recognise the signs.
‘Prices are slipping back as affordability issues bite but not all sellers understand this. I’ve seen this problem before. Initially everyone refuses to accept that prices might have topped out.’
So sellers must say goodbye to the days where buyers would offer tens of thousands of pounds over the odds to secure one of the rare available homes for sale.
It’s now a buyer’s market.
WHICH AREAS HAVE BEEN WORST HIT?
Properties on this road in the heart of Notting Hill and close to Portobello Market are currently on the market for over £12million
Homes in the City of London currently take the longest to sell with a 57-day average, the Zoopla data reveals.
Properties have typically taken 49 days on average to sell over the past five years, so homeowners in the central area have seen an eight-day jump in selling time.
It’s a similar story in Kensington & Chelsea, as houses in the exclusive area now take 52 days to be snapped up by a buyer, a rise from the usual 46 days.
It’s no secret that the London property market is struggling. Previously soaring property prices and high stamp duty charges have tempered demand which has left droves of homes – especially flats – languishing on the market.
Plus, the Government’s attack on wealth has caused high-net-worth individuals to flee the country and overseas buyers – who normally compete to snap up swathes of London rental properties and flats – to stay away.
But the new data reveals the capital is not the only place in the country to face a sink in demand from buyers. Far from it.
House sales in West Devon have slowed the most. In some parts, second home owners have been subject to a punitive 100 per cent council tax hike since April
In fact, homes in 352 of the 377 local authorities analysed by Zoopla are taking longer to sell than usual. From luxurious areas in the inner capital to Gwynedd in north Wales, demand is plummeting.
A slew of the places Zoopla found house sales to have slowed the most – including West Devon, Teignbridge and South Hams – have been subject to a punitive 100 per cent council tax hike for second home owners since April. This will have massively deterred those looking for a holiday home near the coast and slowed the local property market.
The southwest has seen a 21 per cent surge in supply overall.
West Devon has seen the biggest hike in selling time as properties now take almost 68 per cent longer than usual to go.
Over the last five years, homes in the local authority were snapped up in 31 days. But between April and June, this soared to 52 days.
Teignbridge, also in the southwest, has seen a 56 per cent increase in the number of days it takes to sell a home while for sellers in Torridge it’s a 55 per cent hike.
Homeowners in South Hams also have to wait 53 per cent longer for a sale – from 32 days to 49 days.
Elsewhere on the south coast, Eastleigh, near Southampton, has also seen a huge falter in demands as properties take 52 per cent longer to sell.
SCOTLAND HOMES SELL IN DAYS
In North Lanarkshire and Falkirk, properties are being marked as ‘sold’ or ‘sold subject to contract’ in 12 days while in South Ayrshire and West Dunbartonshire it’s 13 days
North of the border, however, is bucking the trend. Homes in vast swathes of Scotland are being snapped up in as little as 12 days on average, the Zoopla analysis shows.
In North Lanarkshire and Falkirk, properties are being marked as ‘sold’ or ‘sold subject to contract’ in 12 days while in South Ayrshire and West Dunbartonshire it’s 13 days.
But estate agents in North Lanarkshire describe homes appearing on the market garnering tens of viewings in a few days and buyers placing offers worth thousands of pounds over the asking price.
Craig Mitchell, director of Move On estate agents in Motherwell, says: ‘There’s been a lot of people wanting to buy but not as many properties coming on to the market. Properties typically have viewings within one day and they are selling within a few days.
‘Sale prices are really high and sellers are getting good offers.’
He’s seen one property listed for £210,00 and the first buyer to view it offered £220,000.
Why? Estate agents explain there’s still a huge demand for properties due to the incredible value for money the area offers.
Properties in Motherwell have sold for an average of £181,886 over the last year, significantly lower than the UK average of £270,000, according to Zoopla.
In Northern Ireland, homes in Derry (pictured) and Strabane now sell in 24 days
Plus, the demand has picked up among first-time buyers especially, while the market for family homes has slowed along with the rest of the country.
When it comes to the biggest decrease in the time it takes to sell a home, Northern Ireland takes the top spot.
In Derry and Strabane, homes now sell in 24 days. Over the last five years it has taken 34 days on average – ten days more – so buyers are snapping up homes 29 per cent faster. Causeway Coast & Glens, also in Northern Ireland, has seen sale time plunge from 29 to 26 days – a 20 per cent fall.
HOW TO SHIFT YOUR HOME
For sellers, the easiest way to sell your home quickly is to price it right. But this simple sounding task is not easy.
Estate agents will often price a home higher than its value to entice vendors.
Meanwhile, sellers often tend to think their home is perfect, unique and will believe a high asking price is justified.
However, if you want your home to be snapped up in this slower market, you need to price realistically. Mr Pryor says: ‘For most people, a lower than expected price isn’t a major problem. What they want to buy will be similarly impacted. Lower prices should help first time buyers.
‘The people who might suffer are those trading down. In a strong market you can usually get away with over-pricing as the market catches up but you need to be realistic in this market and pitch your asking price at a level that today’s buyers recognise.
‘You may think you’re priced correctly but if you aren’t getting any viewers then you’re asking too much.’
Price reductions will be flagged on property portals such as Rightmove or Zoopla which will raise suspicions of prospective buyers, potentially meaning it will take even longer to sell your home.
Mr Pryor suggests if you are getting viewings but no prospective buyers are making an offer then simply ask them why and make changes based on this. ‘Most will be honest with you,’ he says.
Get your home valued but also look at the prices of recently sold properties in your area to gauge the current market.
You should also choose an estate agent that will price the property well.
Use a comparison tool such as the best estate agent finder from the Homeowners Alliance. Go to hoa.org.uk/services/best-estate-agent
OPPORTUNITY FOR BUYERS
But for buyers, there’s an opportunity to take advantage of the slow-moving market. This tepid environment means price growth is minimal and sellers are desperate to offload their home onto a willing buyer.
Plus, as a handful of lenders have recently relaxed affordability criteria, you may be able to borrow up to tens of thousands of pounds more than previously.
Henry Sherwood, of The Buying Agents, says buyers can pounce on the slowdown and secure a good deal if they know what they are doing.
‘Either get professional buying advice or do your research. You need to know what the sale prices – not asking prices – are doing.
‘Look at the sold price per square foot and not just the sale price. Compare recently sold properties in the area so you have a rough guide.
‘There is no point negotiating a 10 per cent discount from the asking price if the property is 15 per cent over valued to start with.’
- Are you struggling to sell your home? Email: L.evans@dailymail.co.uk