The booming UK residential property market recorded another significant drop in new enquiries to estate agents in the past week, indicating that while activity overall remains well above average, the market is heading back towards levels normally seen in the quietening autumn months, the latest Yomdel Property Sentiment Tracker (YPST) shows.
Visits to estate agent websites remained very strong, although down 10 percentage points to end 33% higher than the same week last year. New vendor enquiries were down 6% on the week to mark a six-week losing streak leaving them 43% lower than the all-time peak hit in mid-July, while buyers also lost a further 8% and landlords fell 2%, data up to midnight 11 October showed.
Tenant enquiries rallied to gain 9% to end 26% above the same week last year and indicate strong on-going demand in the private rental sector.
“The downward trends are well established now, and the announcements of increased restrictions due to coronavirus in certain parts of the UK are likely to also act as a brake. The boom times are not over but talking to estate agents and reading the tea leaves it suggests agents need to take urgent steps now to secure pipelines against further disruption,” said Andy Soloman, Yomdel founder & CEO.
“The fear being expressed to me is that as we head closer to Christmas withdrawals and fall throughs could rapidly mount, especially as the deadline for benefiting from the stamp duty holiday becomes increasingly unrealistic. Agents need to ensure they are so offering digital communication and service options, plus doing everything possible to help squeeze transactions through the process,” he added.
New vendors lost 5.58%, or 7.71 points, to end the week on 130.50, which left them 31% above the pre-covid-19 62-week average and at their lowest level since 17 May. However, they are 52% higher the same week in 2019.
After a brief rally last week, buyers fell again losing 7.55%, or 10.41 points, to close at 127.46, some 27% above pre-covid-19 average, and 40% above the same week last year.
Landlords slipped 1.86%, or 2.17 points, to finish at 114.78, around 15% above the average, and 15% higher than the same week in 2019.
Demand from tenants recovered to rise 9.29%, or 9.94 points, to close at 116.68, some 17% above the pre-covid-19 average.
It’s the run up to Christmas (sorry), stock levels are depleted and the stamp duty incentive is fizzling due to the conveyancing taking so very long….
Coronavrirus is a factor that cannot be ignored but people in work still need housing and so long as credit runs freely, people will continue to move….
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Yes volumes are slowing but remain significantly higher than normal for this time of year. The question is whether the slowdown accelerates or steadies and passes through to January with elevated activity through Nov/Dec, which I’m sure will be welcome.
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We’ve actually been dealing with a years worth of pent up demand, Boris & Theresa Show, Election, Brexit, Covid etc etc – Santa and the Easter Bunny too….
It will undoubtedly peter out, but activity will remain
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Yes James, I’m inclined to agree. Activity will remain as people will always need to move.
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