Estate agents are facing a more challenging sales environment as a surge in housing stock gives buyers greater choice and negotiating power.
New figures show the number of homes on the market has reached its highest level in a decade, while sales agreed in May fell sharply, highlighting the growing difficulty many agents are experiencing in converting listings into completed sales.
New figures from TwentyCi show that 794,000 properties were listed for sale during the first five months of 2026, up 2.7% on the same period last year and the highest volume recorded by the property data provider. While increased supply is helping to create a more balanced market, it is also making it harder for agents to secure sales as buyer demand cools following last year’s rush to complete ahead of stamp duty changes.
The figures reveal that the number of properties moving to sale agreed fell by 4.1% year-on-year, with activity weakening further in May when agreed sales were down 8.1% compared with the same month in 2025. While demand remains above levels seen in 2023 and broadly in line with 2024, the figures suggest market momentum is beginning to soften.
The data suggests that increased competition between sellers is beginning to slow market momentum, raising concerns over transaction levels in the months ahead.
The increase in available stock is also putting pressure on pricing. Average new instruction prices fell by 1.2% year-on-year to £441,400, although achieved transaction prices have remained relatively stable, indicating that sellers are having to compete harder to attract buyers rather than accept widespread price reductions.
There were some positive signs for agents and conveyancers, with the proportion of transactions falling through declining from 24.4% to 23.4%, while the total number of fall-throughs dropped by 11.1%. However, transaction times continue to lengthen, with the average period between sale agreed and exchange rising to 132 days, up seven days on a year ago.
With stock levels continuing to rise and agreed sales beginning to slow, the figures point to a more challenging second half of the year for agents seeking to convert listings into completed transactions.
Colin Bradshaw, CEO of TwentyCi, said: “The most striking feature of today’s housing market is the level of choice available to buyers. Supply is at its highest point in a decade, creating a far healthier environment for purchasers than we have seen for many years.
“While demand has softened compared with the stamp duty-fuelled market of early 2025, buyer activity remains resilient by historical standards and significantly stronger than we saw in 2023. The market is becoming more balanced rather than materially weaker.
“For lenders, there are encouraging signs beneath the headline transaction figures. Fall-through rates are improving, house prices remain remarkably stable, and buyers are entering the market with more choice and greater negotiating power. These are all characteristics of a more sustainable housing market.
“That said, the slowdown in sales agreed activity during May warrants close attention. Sales agreed are one of the clearest leading indicators of future mortgage demand, and if this trend continues we would expect it to feed through into lower transaction volumes later in the year.”
