The property market has stalled, and the slowdown is already rippling through the broader economy.
Transaction times stretch to record lengths
Data from a leading chain shows the average interval between a sale agreement and contract exchange now sits at 104 days, up from 73 days a decade ago. Leasehold deals take even longer – about 155 days compared with 97 days for freeholds.
One in three agreements collapses before reaching exchange, and in April, 61% of deals took longer after agreement than they did to find a buyer. The pressure on agents is palpable.
Industry insiders recall the frantic push around the last stamp‑duty deadline, when solicitors, mortgage brokers and conveyancers worked late into the night to clear a backlog. That effort proved the system can sprint when a tax date looms, but it falters on an ordinary Tuesday.
Two mismatched problems block progress
On the resale side, inventory is plentiful – supply sits at a 12‑year high – yet many listings remain unsold because sellers price above what buyers can afford. Overpriced listings linger, forcing price cuts that rarely revive momentum.
Conversely, the new‑build segment suffers a genuine shortage. Planning permissions granted last year fell to levels not seen since 2013, and many starts have stalled. Fresh completions are vital; each new home can trigger a chain of related purchases, from kitchen fittings to moving services.
When transactions stall, spending on furnishings dries up.
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Renovations and related trades also shrink, tightening the feedback loop that normally fuels growth.
Addressing both sides simultaneously is essential. Reducing excessive seller expectations could clear existing stock, while accelerating approvals for new projects would inject fresh supply.
The administration’s recent stance – shelving a land‑value tax for a year while keeping stamp duty intact – signals caution but not boldness.
Calls for decisive policy shifts
The industry leader proposes three steps. First, abandon the land‑value tax proposal entirely and chart a clear path toward eliminating stamp duty on primary residences, a levy that discourages mobility.
Second, make upfront information packs and pre‑packaged property details standard practice, reducing the lag caused by incomplete seller documentation.
Agents also bear responsibility: accurate pricing, honest communication and thorough seller preparation are non‑negotiable. Yet they cannot unilaterally fix tax policy, planning bottlenecks or outdated transaction procedures.
In short, unlocking growth will likely require the government to loosen the handbrake on the property market, allowing the sector to resume its role as a catalyst for broader economic activity.
