The recent base rate cut in August has brought renewed enthusiasm for home buyers, with 61% of buyers planning to move home in 2025, Benham and Reeves reveals.
The survey of 1,203 current UK homebuyers found that 67% are hoping that a home buying initiative will be introduced in the Autumn Statement this month, such as stamp duty holiday or the relaunch of a Help to Buy scheme.
However, as it stands, Benham and Reeves says homebuyers look set to be disappointed with no suggestion of any such help coming from the new Labour government.
The survey also shows that first-time buyers (FTBs) account for 68% of those looking to climb the property ladder.
Of those house hunting, 49% have been looking for six months or more, with 43% of those having been searching for over a year.
House price affordability has been named as the main reason that buyers are yet to make their move.
A lack of stock within their desired area and the ability to gather a suitable deposit were also named as barriers.
However, 59% of those surveyed said that the peak in interest rates since August last year to 5.25% had been a key deterrent.
Benham and Reeves director Marc von Grundherr says: “Property market activity has been somewhat subdued of late and it’s clear that high interest rates and the resulting increase in the cost of borrowing have played a major factor in preventing the nation’s homebuyers from making their move.”
“Whilst interest rates remain high, the first base rate cut in four years has helped to reassure buyers that the outlook is improving and, with more interest rate reductions on the horizon, many now intend to push on with their purchase over the next 12 months.”
“This should help boost the returning market momentum that has been observed in recent months and puts the market in very good shape for the year ahead.”
“However, those hoping to see some form of buying incentive introduced in the upcoming Autumn Statement are likely to be disappointed as, so far, there’s been no sign of any such initiative from the current government.”
