Here at Bond Residential we have seen a strong start to the year with sales levels in the 1st four months at both offices significantly higher than the same period last year.
We would have traditionally expected sales levels to increase again in May, indeed it was widely expected that the last reduction in interest rates would boost buyer confidence and further boost the property market. The reality is that as we approach the summer, we have seen a more challenging conditions and this was recently confirmed in the last property report from Rightmove.
New properties coming to market remains at decade-high*
The number of new properties coming to market is now 14% ahead of this time last year, creating a decade-high level of choice for buyers.
With new seller activity currently outpacing new buyer activity, sellers are having to work harder to secure buyers. This shift towards a more balanced market is good news for buyers but means sellers need to be more realistic about their pricing expectations to achieve a sale.
Whilst asking prices for new listings had risen by 0.6% (+£2,335) and a new record of £379,517. The seasonal price increase was the lowest for the time of year since 2016.
The report also stated that the number of homes for sale on Rightmove is the highest recorded in the last decade and the number of new properties coming on the market was 14% higher than the same period last year.
This increase in supply unfortunately coincides with a 4% drop in new buyer demand when compared to the same time last year. Despite this drop in new buyer demand the number of sales being agreed was 5% higher than the same period last year, indicating that spoiled-for-choice buyers are still being tempted by the right property at the right price.
Advice for sellers
Colleen Babcock, property expert at Rightmove* has this advice for sellers:
“In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look. This month’s price increasein May for nine years is a sign of a market that favours buyers. As new property stock continues to outpace new buyer demand, some caution on price expectations is needed to achieve a sale.
It is therefore crucial that current home sellers understand that they need to work hard to attract buyer attention. Our research on pricing success highlights the unintended result of pricing a property too high at the start of advertising to test the market, only to have to reduce it later. Homes which need a reduction in price during marketing can take over two months longer to find a buyer.
Our data also shows that there has been a 32% increase in the number of sellers who have swapped estate agent to try and find a buyer. This reflects the high market competition, and the frustration of some owners that their homes aren’t selling, a process made much harder by setting an over-optimistic price to begin with”.
Steve Wiggins, Director at Bond Residential says “Buyer confidence is definitely improving and whilst buyer demand may have dropped our branches are seeing first hand that buyers currently searching for a new home are serious and most are making decisions shortly after viewing. However, they are extremely sensitive to pricing and therefore setting an asking price which will be competitive and therefore attractive to buyers will give you the best chance of achieving a sale now and being able to move home in the early Autumn.
He added “Delaying any decision to change your pricing strategy now could result in you still trying to secure a sale mid-late summer, a time when traditionally buyer activity drops and with the sales process now taking an average of 14 weeks may ultimately lead to sellers not moving home until early 2026”.
*Source Rightmove Property News May 2025
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