Sentiment remained robust in September as reduced buying power made local agent advice invaluable, according to the latest OnTheMarket property sentiment index.
The data found that 75% of active buyers in the UK in September were confident that they would purchase a property within the next three months, up from 73% in August.
Meanwhile, 79% of sellers were confident they’d sell within the next three months, consistent with August’s figure.
Stock levels are currently at their highest since March 2021, leading to a levelling off in pricing, which OnTheMarket chief executive Jason Tebb says will be welcomed by first-time buyers in particular who may be worried about being priced out of the market.
Tebb comments: “At the same time as buyers having more choice, mortgage rates are rising along with the cost of living, which will prey on minds when making offers.”
“Even with the recent stamp duty reductions, buyers have less buying power so sellers would be wise to take advice from an experienced local agent who can give an achievable valuation.”
“New properties coming to market which are not priced realistically are likely to struggle to sell and stick on the market.”
Despite rising inflation, 53% of properties in September were sold subject to contract (SSTC) within 30 days of first being advertised for sale, compared with 55% in September the previous year.
Only 4% of movers in September were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, unchanged when compared to the month prior (4%).
Greater London and the North West had the highest number of respondents who already had their mortgage agreement in principle in place prior to starting their search for a property (38%).
Scotland and the South West had the lowest number of respondents who already had a mortgage agreement in principle in place before starting their property search (25%).
Just over a quarter, 26%, of movers hadn’t considered applying for a mortgage before starting their property search, with buyers in Greater London the least likely to have considered applying for a mortgage before starting their search for a property (34%).
Meanwhile, 37% of buyers surveyed said that they didn’t need a mortgage in order to purchase a property.
Greater London had the lowest number of respondents who indicated that they wouldn’t require a mortgage to purchase a property (20%).
Scotland had the highest number of respondents who indicated that they didn’t need a mortgage to buy their next home (50%).
Tebb says: “Ultimately, those serious about moving and who need to move, will continue to do so. People move for a variety of reasons – family, job, marriage, divorce, death, debt – which is why there’s always a certain level of transactions, even in more challenging markets which we’ve seen evidence of historically when faced with tough conditions.”
“Most recently, rather than the pandemic turning the UK property market into the disaster that some predicted, it showed remarkable resilience with strong growth. Despite everything, there is an underlying positivity and the aspiration to buy property remains.”
