Rise of the 'speedy seller'

Published 16th Oct 2007

People are selling their properties at a faster rate than ever, according a new report…

LMS, the largest originator of conveyancing in the UK, has published the LMS Market Efficiency Monitor Q3 2007. It shows that there has been some improvement in the number of days it takes to sell a property during the last quarter, down from 53 days to 49 days, a four day efficiency saving.

The longer the period of time between a property coming on to the market and the exchange of contracts, the greater the possibility of the sale falling through or of gazumping. This new data indicates that, although far from ideal, there does seem to have been an improvement in overall market efficiency .

In the first half of 2007, the average number of days between notification of sale and exchange was 55, 17% higher than during 2005 and 2006. Recent improvements between July and September illustrate how we are witnessing gradual housing market reform with an overall decrease in average transaction times to 49 days.

Aborted sales
As HIPs were introduced in August 2007, it is unlikely that much of this improvement is attributable to the packs, but full roll out across all properties should ensure that exchange efficiency is dramatically improved.
Until all residential homes have a HIP, their beneficial impact on property chains and on the overall buying and selling process will not be fully reflected in efficiency figures.

Data on the number of aborted sales within Q3 reveals a 16% cancellation rate (within three full months from Notification of Sale in June 2007), almost a fifth of instructions are falling through before completion.
This level of aborted sales has not been seen since 2005. This transaction inadequacy demonstrates how, in the third quarter of 2007, critical reform of the housing market is needed more than ever.

Improving efficiency
Dominic Toller, Director of Marketing & New Business, LMS, commenting on this latest research, said: “Any improvement in efficiency over the last three months is unlikely to be solely thanks to HIPs, rather due to a decrease in the number of properties on the market. With volumes down, the market tends to be more efficient.

Toller goes on to say: “Over the next few months, the market should start to feel the real benefit of HIPs with efficiency improving and cancellations going down. With a bit of luck we’re only months away from all properties requiring a HIP before marketing and this can only mean a more informed decision-making process which will reduce the likelihood of cancellations and contribute greatly to improving market inefficiency.”

Source: ' Move Channel Ltd '

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