Agency instructions end the year on the rise as demand slows

Agents are seeing more instructions as the year ends but fewer properties are selling, industry data shows.

Figures from property data company TwentyCi for December reveal that new instructions rose 3.04% compared with November to 373,151.

However, sales agreed are down 9.21% on a monthly basis to 261,560.

Most activity regarding new instructions is largely taking place in the South East of England, followed by the East and North West of England, according to TwentyCi’s latest Homemover Pulse report.  

Compared with 2019, there has been a boost in new instructions in: 
•    The East Midlands - 1,004 more instructions
•    East of England  - 498 more instructions
•    Inner London - 7,157 more instructions
•    North West - 813 more instructions
•    Outer London - 1,928 more instructions
•    Scotland - 386 more instructions
•    South West - 259 more instructions
•    Wales - 1,327 more instructions
•    Yorkshire and the Humber - 774 more instructions

The South East is seeing the most activity regarding properties sold subject to contract, TwentyCi said.

Compared with 2019, the number of properties that have been sold has not yet fully recovered. 

Only the North East is currently outperforming the same period in 2019, the report said.

TwentyCi said: “This shows that demand for properties may be cooling after the sharp incline during the pandemic and potentially in response to the cost of living crisis and mortgage interest rate fluctuations.”

Completions in the three months to December 2022 were also 0.34% lower than in the three months to November at 276,626. However, compared with 2019, there was growth of 9.88%, TwentyCi said.

The greatest increase was in the South East, where completions rose 14.1% compared with 2019.  

The second largest increase came from inner London, up 31.09% over the same period.

The only area that has not seen an increase in property contract exchanges when compared with 2019 was the West Midlands, which fell by 0.89% 

TwentyCi added: “Whilst we are seeing a normalisation in the property market, that doesn’t mean that opportunities do not exist. 

“Homemovers are demonstrably still a strong audience for various sectors, from home retailers to utility providers and insurance companies.”