Homeowners pulling properties from the market after buyers make low-ball offers

The proportion of homeowners withdrawing properties from the market has soared after sellers were inundated with low offers from buyers.

More than a third (35pc) of sellers took their properties off the market without selling them last month, up from 24pc during the same time last year, according to analyst TwentyCi.

This year, the proportion of properties withdrawn reached its highest since September 2020, at 38pc in January, and remains above last year.

Neal Hudson, of analysts BuiltPlace, said homeowners who do not need to sell are pulling out of the market if they do not achieve their desired price.

He said: “That obviously then has a knock-on impact and reduces the number of homes available for sale which has already been low. It points to stagnation in the market for the time being.”

Jonathan Hopper, of buying agents Garrington Property Finders, said the market had reached the “tail end of the boom”.

He added: “Those that wanted to try and time the height of the market blinked and missed it. After many months of unsuccessfully trying to sell for an overinflated price, they are now throwing in the towel.”

“Equally, there are those that wanted to come to the market at the start of this year and have been kite-flying on price, have not had a bite and are coming off the market because they want to move rather than need to move.”

He expects these sellers to try again in the spring and summer, when the market tends to be busier.

Fixed mortgage rates are expected to keep dropping this year, which could make it advantageous to wait, experts said. However, prices are also forecast to decline. House prices are already down 3.7pc from their peak in August 2022, according to lender Nationwide.

The Office for Budget Responsibility (OBR), the Government’s official forecaster, released a revised forecast for house prices last week, saying they would plunge 10pc from their peak last year. The OBR had previously predicted a 9pc slump. Property transactions are expected to drop 20pc from their peak in 2022.

James Waight, of John D Wood & Co estate agents, said he had seen more withdrawals among sellers at the top end of the market in places such as central London.

He said: “They can afford to purchase another property without having to sell. They’re in a very fortunate position.”

Mr Waight said the prevalence of discounts presented a good opportunity for those looking to upsize.