The level of unsold sales stock in England and Wales is at its highest since 2014, research suggests
It comes as the latest Home.co.uk Asking Price Index shows a surge in new instructions has swelled estate agents’ portfolios further.
The research found that the total number of new instructions entering the market during August 2024 was 14% more than during August 2023 and 8% more than August 2019.
The unsold sales stock count for England and Wales increased again to make the current total the highest since November 2014, with almost 5,000 properties added to agents’ portfolios, making the current count of unsold properties 499,667.
While unsold stock is at a 10-year high, typical time on the market is at 93 days – seven days less than in September 2019
This is putting pressure on prices, according to the research.
Average asking prices dipped for the first time in nine months during early September by 0.2%, while prices are up 1.5% compared with this time last year to £358,563.
Doug Shephard, director of Home.co.uk, said demand remains sufficiently strong to have prevented a large glut of unsold properties.
He added: “Vendors are clearly motivated given that, seasonally, prices usually dip from here towards the Christmas break. The drop in the bank rate will have been the green light for many vendors to commit, but a substantial and growing landlord exodus has also been observed.
Of course, higher stock levels put downward pressure on prices. The last time the total stock of unsold properties on the market was this high was in 2019 and that year prices essentially went sideways (despite the base rate being a mere 0.75%).
“For the time being, it is reassuring that the rate at which properties are moving through the market is considerably higher than in 2019, although given the recent uptick in inflation (and the Bank of England’s poor track record on forecasting), this may not be the case for much longer. Buyer optimism could evaporate very quickly should monetary inflation be found to be out of control again.”