Record number of properties sold for more than asking price in August

NAEA Propertymark has released its Housing Report August 2020, which states that 13% of properties sold for more than the original asking price during that month. This is the highest recorded since November 2015.

However, housing demand has fallen marginally from July.

What properties sold for

• In August, one in eight (13%) properties sold for more than the original asking price
• This is a rise from 8% in July, and 10% in June
• The majority (53%) of properties sold for less than the original asking price in August

Sales agreed 

• The average number of sales agreed per estate agent branch stood at 12 in August, a slight decrease from 13 in July
• This is the highest figure recorded for the month of August since 2007, when the number of sales per estate agent branch also stood at 12
• Year-on-year, the number of sales per branch has increased by 33%, rising from nine in August 2019

Demand for housing

• In August, the number of house hunters registered per estate agent branch fell from 428 in July to 396

Supply of available properties 

• The number of properties available per member branch stood at 40 in August, falling marginally from 43 in July

Sales to first-time buyers 

• The number of sales made to first-time buyers stood at 23% in August, a fall from 25% in July

Mark Hayward, Chief Executive, NAEA Propertymark comments: “It’s interesting to see that one in eight properties sold for more than asking in August this year. 

“Last month, we witnessed a boom in the number of prospective buyers following the government’s announcement of a Stamp Duty holiday, and it seems this is increasing the level of competition in the property market. 

“With the increase in the number of prospective buyers since this announcement, many buyers are clearly willing to pay over the asking price in order to secure their dream home.”