It’s currently a buyer’s market in house sales. But that’s not all bad news. If you’re looking to move, here are some trends and stat you need to know.

If, like me, you’re on the cusp of moving house, and watching keenly to see how the market is moving, some new figures make for enlightening reading.

Despite a long-term housing shortage in the UK, it is (to borrow the traditional cliché) currently a buyer’s market. That’s not necessarily a problem if you are selling as well as buying – but some interesting trends are developing which are important to know.

While average UK house prices were little changed in the 12 months to September 2023, according to HM Land Registry, what people are actually paying for them has changed – a lot.

According to research by Zoopla, homebuyers in the UK are currently in the strongest negotiating position in five years, with an average discount of £18,000 off asking prices being negotiated to secure a deal.

In fact, the average discount on house purchases has reached its highest level since 2018, standing at 5.5% in the first half of November, well up from 3.4% in the first half of 2023. There are, as ever, some big regional differences. In the South East, for instance, the figures are even more dramatic: here the average discount is 6.1%, equating to £25,000 off the asking price.

Why? Well, it’s complicated! While there is pent up demand for people looking to move house after a sluggish few years, reflected in the number of transactions going up by 15% over the previous year, more houses are coming onto the market than are being sold. In fact, there is currently a six-year high in the number of homes for sale. That’s being accompanied by lower buyer demand compared to pre-pandemic levels – not helped by the increasing costs of borrowing making buyers keenly aware of just how much their mortgage is going to take out of their household budget into the foreseeable future.

Buy-to-let is also failing to take up the slack in the market: new research compiled by Cornerstone Tax has revealed that 15 per cent of landlords say that they are thinking about putting their properties up for sale, as mortgage costs spiralling out of control and changed tax policies are making it less profitable.

What does all this mean for anyone now in the process of moving, or thinking of putting their house on the market?

Firstly, unless you are in the fortunate position of having several people bidding, expect potential buyers of your property to play hardball when it comes down to what they will offer – especially cash buyers. But that also applies to you wearing your “buyer’s hat”.  Having 20k knocked off your expected sale price means nothing if you can do the same with your house purchase. Indeed, you’ll be saving a bit on lower estate agent’s fees and stamp duty.

Having sensible and realistic conversations with your estate agent (for whom a £20,000 reduction will just mean £200 or £300 in lost commission) is key at every stage. It’s down to them to determine just what they think a prospective buyer will really pay when push comes to shove…

Planning your next move with help from RetireEasy LifePlan

Making that next house move could well make a big difference to your retirement finances. How much difference? By playing out different scenarios on how much you will be adding to (or taking away from) your savings and outgoings, you can see precisely how that will play out in the amount you can safely draw down in every year of your future retirement.

And, if your subscription has lapsed, just a few pounds a month can help you see just how much you can really afford to pay for your next home…