NAEA: 33% of properties sold for more than asking price in May

In May, one in three (33%) of properties sold for more than the original asking price, according to data collected by NAEA Propertymark.

As a result, the number of properties selling for over the asking price has beaten the all time record for the second month in a row.

This figure is slightly higher than in April when 32% of properties sold for more than the original asking price.

The average number of sales agreed per estate agent branch stood at 12 in May, which is the same as April.

Year-on-year, this figure is the highest for the month of May in 17 years, since 2007 when the number of sales per branch stood at an average of 13.

The number of sales made to first-time buyers was at 27% in May, which is the same as both March and April.

As well as this, the number of properties available per member branch stood at 25 in May, falling from 27 in April.

This is the lowest number recorded since December 2002 when there were also 25 properties available per branch.

This means there is an average of 20 buyers for every available property on the market.

Looking to demand, the average number of house hunters registered per estate agent branch stood at 506 in May.

This is an increase from 427 in April, and the highest figure ever on record for May, beating the previous record of 421 in May 2004.

Mark Hayward, chief policy adviser at Propertymark, said: “It is incredible to see demand for housing continuing to break records and more homes selling for over the asking price than ever as consumers rush to beat the initial stamp duty deadline at the end of the month.

“With 20 buyers per available property, we are firmly still very much in a strong sellers’ market; properties are being snapped up swiftly and at record high prices.

“However, we anticipate that there will be a much needed rebalancing over the coming months as the remaining stamp duty deadline phases out and people start returning to a semblance of normality, spending money they have been able to save during the pandemic on holidays and more normal activities such as spending to see friends and family.”