A glut of properties for sale may now be ending, if recent figures prove true, but what impact will that have on buyers and sellers?

In the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey, published last month, new instructions to put properties on the sales market fell further into negative territory, dropping to -23% from -10% previously and marking the weakest reading in more than a year.

In another pointer to a possible tightening of the pipeline of homes coming to market in the coming months, market appraisals also fell.

Meanwhile, in its July update Rightmove revealed that the number of homes for sale was already slightly below last year, down by 1%, although still close to a 12-year high.

Sellers may well be reacting to nervousness around upcoming budgetary announcements following the change of government leadership, as well as higher mortgage rates caused by geopolitical and economic tensions and putting their moving plans on hold.

Less competition for sellers
But what does that mean? If supply constricts, there will be less competition from other sellers for buyers’ attention, which could mean a better chance of achieving the asking price since the competition will be amongst buyers chasing the same property. Asking prices for newly-listed homes coming onto the market for sale fell 1% in July so an uplift would be welcomed for those reliant on getting as much as possible for their next move.

Challenges for buyers
Buyers, meanwhile, would face more competition than they have in the past – which could mean additional challenges in securing the property of their dreams and less bargaining power than in a more plentiful market.

Having finance in place and being ready to move will help show sellers that buyers are serious about moving – which makes it more likely that theirs is the offer that is accepted.

What’s the true picture?
The reality is that the RICS figures are a little futuristic. For now, at least, it remains a buyer’s market with a range of properties to choose from, despite the RICS warning.

That means that pricing, presentation and clear property advantages – such as size, location and condition – will continue to be the factors that convince buyers to purchase one home over another. Sellers must continue to work hard to promote their property at its best and to price realistically in line with the rest of the market to maximise buyer interest and sell fast.

But the warnings of a possible slowdown in supply are also to be heeded, especially if buyers also get nervous and demand drops too. Getting the basics right, supported by a trusted agent, remains as important as always.