The number of property sales agreed last month proved more resilient than new listings, pushing the sales conversion rate to a six-month high.
New listings across Great Britain fell 11.6% to 185,595 in August, according to Sprift’s latest Sales Market Intelligence Report.
Sales agreed dropped by a smaller 7.2% to 106,296.
As a result, the national conversion rate increased by 2.7 percentage points to 57.3%. That was its highest level since February.
Fewer sellers also reduced their asking prices. Price reductions affected 27.2% of new listings, down from 31.3% in July.
However, almost 80,000 properties listed during August remain unconverted. This highlights the continued challenge facing agents and vendors in securing buyers.
The figures came against a relatively stable mortgage backdrop. The Bank of England held Bank Rate at 3.75%, while the average two-year fixed mortgage rate remained around 5.6%.
London continues to lag
There remains a substantial regional divide.
Scotland recorded the highest conversion rate at 74.8%. The North East followed at 64.3%, with Wales at 62.7%.
London was at the opposite end of the table. Just 40.8% of new listings converted to sales – 34 percentage points below Scotland.
Eight of the 11 regions recorded conversion rates above the national average.
London also has the largest backlog of unsold August stock. Some 13,157 properties remain unconverted, compared with 2,501 in the North East.
Pricing pressures are particularly evident across southern England.
The South East recorded the highest proportion of reduced listings at 43%, followed by London at 41.2%. Scotland had the lowest rate at 22.3%.
Across Great Britain, total for-sale stock now stands at 741,504 properties. Homes have been on the market for an average of 159 days.
There were also significant differences by property type and location. Semi-detached homes in Scotland averaged 94 days on the market. Flats in the North West averaged 225 days.
Planning applications fall
Planning applications also dropped 8.8% to 17,947 during August.
However, the approval rate edged up to 85.7% of applications determined.
Matt Gilpin, founder and CEO of Sprift, said: “August is a reminder that a six-month high for the country as a whole still hides two very different markets underneath it. Scotland is converting almost three in four new listings. London is converting two in five.
“Across Great Britain, new listings fell faster than sales agreed, and the vendors pricing to today’s affordability are the ones getting deals done.
“Buyers haven’t disappeared. They have simply become harder to please.
“Agents who know their patch and can back it with data are going to win more valuation conversations this autumn. In a market where the first price matters more than the eventual reduction, realistic pricing from day one is the difference between converting and sitting.”
