New research from Moverly, a provider of digital property packs, reveals that overpriced properties are more likely to linger on the market. However, inflated prices may not be the sole factor affecting sales. The study sheds light on the complexity behind slow-to-sell homes and offers insights into other issues hindering property transactions.
Overpricing linked to slow sales
Moverly’s analysis focuses on homes that have been on the market for at least 14 months, revealing that across England, these properties are priced 22% higher than the average asking price. London, the South East, and the South West lead in slow-to-sell homes, with London accounting for 19% of the national total. In these regions, homes stuck on the market are listed at notably higher prices—20% above the London average, 18.1% in the South East, and 15.5% in the South West.
Gemma Young, CEO of Moverly, explained: “The correlation between prolonged market presence and inflated listing prices underscores the critical importance of aligning pricing strategies with current market conditions.”
Beyond pricing: what else is causing delays?
While overpricing is a major contributor to slow sales, Moverly’s data indicates that it’s not the only factor. The North West, for example, has one of the highest proportions of slow-to-sell properties, but these homes are priced just 4.6% above the region’s average house price. Conversely, the West Midlands, where homes are overpriced by 10.4%, has one of the smallest shares of slow-to-sell properties at just 9%.
Market activity also plays a role. The study highlights that areas with the highest levels of transactions also tend to have more slow-to-sell homes. The South East, North West, South West, and London have all seen significantly higher market activity over the last year, with the South East leading the way with 93,385 transactions. By contrast, the North East, which has the smallest proportion of slow-to-sell properties (5%), also recorded the fewest transactions at 28,897.
Young noted that operational inefficiencies are another significant factor: “Operational challenges in bringing properties to market and guiding them through to completion significantly contribute to delays. The initial stages of listing a property are pivotal.”
The importance of upfront information
In addition to pricing and market activity, Moverly’s research highlights the importance of gathering comprehensive information early in the sales process. Meeting Trading Standards’ Material Information requirements and providing preliminary legal details upfront can significantly speed up the sale of a property.
“Agents who excel in this area are those who proactively address administrative and legal processes,” said Young. She emphasised that agents who gather all necessary information before listing are better equipped to manage inquiries, conduct viewings, and negotiate offers quickly, giving them an edge in a competitive market.
Looking ahead for sellers and agents
With slow-to-sell homes becoming more common in high-demand regions, aligning pricing with market conditions remains essential. However, as Moverly’s research suggests, tackling delays in the sales process involves more than just adjusting prices. Operational efficiency, timely information gathering, and streamlining legal processes are all crucial elements in reducing time on the market.
As landlords and property investors navigate the current housing market, the lessons from Moverly’s findings are clear: success depends on pricing competitively and addressing all facets of the sales process to avoid unnecessary delays.
