Stagnating property market means 75% of homes sold below asking price in January

Three quarters of homes were sold for less than their asking price in January

Three quarters of homes were sold for less than their asking price in January - Credit: PA Archive/Press Association Images

The UK’s property market has continued to cool this January, with three quarters of homes being sold for less than their asking price, a new study has found.

The National Association of Estate Agents (NAEA) report also said that supply is down to 44 properties per member branch compared with 45 in December, and an average of 47 for the whole of 2014.

Demand was said to be at its lowest level for 10 months, dropping 2 per cent from 360 registered house-hunters per member-branch in December, to 353 in January.

However, Charles Christie-Webb, at Camden Bus Estate Agents said the company had experienced their second most successful January in 28 years, attributing it to good supply and showing how much the local picture can vary from the national view.

Mr Christie-Webb added that the ratio of properties being sold below or above the asking price was “half and half” in January, but that because of decreased supply, February had been quieter.

Gideon Gold of Hunters West Hampstead, also felt the report’s findings did not reflect the agency’s results.

He said: “There are always people who need to move around here because of the schools, the transport, improvement of the area and the station being rebuilt.”

According to the NAEA report, despite low supply and demand, members reported a rise in the number of sales agreed, with an average of eight sales per branch in January.

Among the first time buyers, 31-40 year olds accounted for 44 per cent of sales, while 18-30 year olds made up 39 per cent and 17 per cent of properties were bought by over-41s.