New analysis shows that nearly half of UK homes brought to market in the past three years remain unsold, as the housing market struggles to adjust to post-pandemic conditions. A staggering 44% of listed properties across the country have failed to secure a buyer since the peak pandemic-driven housing boom of 2021 and 2022, with Zoopla data revealing that many of these homes are still lingering on the market.
Estate agents are attributing this disconnect to sellers setting asking prices based on peak valuations seen during the pandemic, rather than reflecting current buyer demand and market realities. Josh Endacott, an estate agent at London-based 1st Avenue, warns that many homeowners are pricing their properties according to personal financial needs or comparable sales from the buoyant period, rather than taking a more realistic approach.
The UK property market has undergone significant changes since the pandemic peak. Rightmove data shows that housing stock available for sale has reached its highest level since 2014, with many sellers maintaining high asking prices despite a recent decline in transaction volumes – which fell by 10.4% across all UK regions in June. This increased supply is creating a more competitive environment for sellers and strengthening the negotiating position of potential buyers.
Properties that remain listed for prolonged periods face significant challenges, with extended listing durations potentially creating a 'stigma' among potential buyers who may question why a property has not attracted offers. Endacott stresses the importance of getting pricing right from the outset, describing the initial four weeks of any listing as critical when buyer interest is highest.
The implications for current and prospective sellers are clear: in today's market, a competitive pricing strategy is essential to maximise viewing numbers and secure a sale. Rather than adopting a gradual price reduction strategy over time, agents are advising sellers to price properties competitively from the start, reflecting the reality of buyer demand and market conditions.