Property sales return to pre-pandemic levels amid greater interest in flats says Rightmove

The number of agreed home sales has returned to pre-pandemic levels for the first time since September, just before the mini budget.

New research by Rightmove found agreed sales numbers are now just 1 percent short of March 2019 levels.

Rightmove defined ‘sale agreed’ as a property listed for sale on its website, has found a buyer and has been marked as ‘sold subject to reservation’ by the estate agent.

However, the final sale price between a seller and a buyer can sometimes differ from the final price on Rightmove, which is registered in the Land Registry a few months later.

Rightmove attributed the rise in negotiated sales to an increase in negotiated apartment sales, where the level is now 10 percent higher than in 2019, after being 11 percent lower at the start of the year.

The trend is most pronounced in London, where agreed apartment sales are now 23 percent higher than in March 2019.

Total agreed sales have recovered from 21 percent behind 2019 levels in January.

Overall, negotiated sales have recovered the most in London and are now 11% higher than in March 2019, while agreed sales in the East Midlands are taking the longest to catch up and are still 11% below 2019 .

Across Britain, agreed sales are 18 per cent below last year’s red-hot property market at this time.

The average mortgage interest rate has fallen slightly this year. The average five-year mortgage rate, with a 15 percent deposit mortgage, was 4.63 percent in March, compared to 5.89 percent in October, according to data from Rightmove sourced from Podium Solutions.

Rightmove has revealed the level of sales that has been agreed upon in different regions in Britain

The average price cut has increased and is now back at pre-pandemic levels of 6 per cent, the equivalent of £22,000, based on the current national average asking price. This is more than 5 percent during the pandemic.

A third of properties are now seeing a price cut, up from last year’s 19 percent during the frenetic market, but in line with pre-pandemic levels of 34 percent.

However, the final sale price between a seller and a buyer can sometimes differ from the final offer price on Rightmove and is not registered in the Land Registry until several months later.

Tim Bannister, of Rightmove, said: ‘The market remains surprisingly robust given the economic headwinds that have hit movers over the past six months.

While the market is certainly not at the exceptional level of recent years, it is a positive sign for brokers that sales are being agreed nationally at the same pace as the last more normal market of 2019, although there are regional differences in Great Britain.

“The level and size of discounts have also returned to pre-pandemic norms, although pricing right the first time can often lead to faster sales, so it’s important for sellers to talk to an agent about their local market so that price them realistically and give themselves the best chance of finding a buyer.”

The average price reduction has increased, says Rightmove, which makes many homebuyers happy

Robert Sturges, of estate agent Chestertons, said: ‘We have a large number of apartments for sale and we have noticed a significant increase in buyer demand for apartments of all sizes.

“This demand for apartments is driven by professionals who want to shorten their commute, parents who invest for their children, as well as foreign buyers who benefit from favorable exchange rates.

“Given the rising cost of living, some buyers may also decide that an apartment is currently more financially viable than a house.

“Another driver of demand for apartments is tenants scrutinizing their finances amid rising rents and deciding that despite higher mortgage rates, buying is a better option in the long run. We are therefore seeing a number of starters entering the market.’