The most recent data and analysis from NAEA Propertymark has revealed that just 3% of properties sold in May did so for above their asking price.
This was a fall of 4% from April and the lowest level recorded since October.
In addition, the report shows that the number of homes that sold for less than the asking price rose to 77% last month- a rise of 5% since April.
The number of house hunters registered per estate agent branch slipped by 8% during the last month, from 381 in April to 350 in May. This fall was unsurprising, given the political uncertainty generated by the General Election.
However, demand from would-be buyers rose by 15% since May 2016, when 304 house hunters were registered per member branch.
What’s more, the number of properties available to purchase rose by 11% over the course of the last month, to 40 per branch. This is a rise from the 37 seen in May 2016.
In addition, the number of sales agreed per branch increased from 8 in April to 10 in May.
3% of properties sold in May were for above asking price
Mark Hayward, Chief Executive of NAEA Propertymark, noted: ‘As a rule of thumb, periods of political uncertainty impact the way buyers and sellers interact with the housing market. In May, it looks like new buyers were stalling their house search until after the election; however the number of sales agreed per branch increased meaning the political landscape hasn’t deterred all house hunters.’
‘Following the result of the general election, it will be interesting to see how the market reacts over the coming months as summer is peak house-moving season,’ Mr Hayward added.