OnTheMarket publish their Property Sentiment Index July 2022 (covering June data)

OnTheMarket publish their Property Sentiment Index for July 2022, detailing the difference between sentiment and reality, using data for June.

Serious buyers and sellers remain confident about prospects for the housing market despite sizeable headwinds.

Key points from report:

• 75% of active buyers in the UK were confident that they would purchase a property within the next 3 months
• 81% of sellers in the UK were confident that they would sell their property within the next 3 months
• 60% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 57% in June 2021

The ‘new normal’, an elevated version of the pre-pandemic market, continues:

Buyer and seller sentiment remained strong in June, despite soaring inflation and the prospect of further interest rate rises creating sizeable headwinds for the housing market. A subtle rebalancing of the market inevitably continues as stock levels keep rising, partly down to the seasonal effect of summer when more homes traditionally come to market. This is leading to a steadier, more manageable environment after the frenzy of the past two years, a ‘new normal’ or elevated version of the pre-pandemic market.

Our data shows that in June, serious buyers were determined to proceed with 75% confident that they’d purchase a property within three months, the same percentage as in May. Meanwhile, 81% of sellers were confident that they could complete a sale within the same timeframe, falling only slightly from 82% in May.

The readjustment in the housing market is inevitable as more stock becomes available and this will likely take several months for the effects to be seen. Whatever happens, those most serious about transacting will get on and do so. Even during the financial crisis of 2008, where residential transaction numbers halved compared with the previous year, there were still hundreds of thousands of sellers who moved because they had their reasons for doing so. While there are different headwinds facing the market now, these are not yet impacting the need or desire of many to move. HM Revenue & Customs reports that transaction numbers have stabilised in recent months, but they remain somewhat elevated compared to before the pandemic.

Of particular interest in June’s data is the 60% of properties in the UK SSTC within 30 days of first being advertised for sale. We would not expect this number to be as high as May’s figure as we encounter distractions such as the approaching summer holidays and children breaking up from school. But given that the figure was 61% in May, the reduction is extremely slight and it’s surprising how strong it remains. With properties selling as quickly as ever, the data further underlines how the most keen and motivated are getting on with the business of moving.

June 2022 Headlines – seller sentiment:

From our sample of sellers surveyed, UK average rates of confidence over the last month were as follows:

• 81% of sellers were confident that they would sell their property within the next 3 months, a slight decrease when compared to May 2022 (82%)
• 14% of sellers were confident that they would sell their properties within the next 6 months, a slight increase when compared to May 2022 (13%)
• 2% of sellers were confident that they would sell their home within the next 9 months, unchanged when compared to May 2022 (2%)
• 3% of sellers were confident that they would sell their home within the next 12 months, unchanged when compared to May 2022 (3%)

June 2022 Headlines – buyer sentiment:

From our sample of buyers surveyed, UK average rates of confidence over the last month were as follows:

• 75% of buyers were confident that they would purchase a property within the next 3 months, unchanged when compared to May 2022 (75%)
• 18% of buyers were confident that they would purchase a property within the next 6 months, unchanged when compared to May 2022 (18%)
• 2% of buyers were confident that they would purchase a property within the next 9 months, a slight decrease when compared to May 2022 (3%)
• 5% of buyers were confident that they would purchase a property within the next 12 months, a slight increase when compared to May 2022 (4%)

June 2022 headlines: Mover attitudes towards mortgage availability:

• As a UK average, in June 2022 only 4% of movers were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, unchanged when compared to May 2022 (4%).
• Greater London had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (42%). The South West and Scotland jointly had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (29%).
• As a UK average, 25% 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 (32%).
• As a UK average, 33% 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 (19%). The South West had the highest number of respondents who indicated that they didn’t need a mortgage to buy their next home (44%)

Asking prices – UK average (excluding Greater London):

Asking prices – Greater London:

Time to Sold Subject to Contract (SSTC) in June 2022:

• From analysis of OnTheMarket.com’s data compiled from estate agents’ listings across the UK, we’re able to track where properties are Sold Subject to Contract (SSTC) the quickest and where they take the longest.
• In June 2022, as a UK average 60% of properties were SSTC within 30 days of first being listed for sale, a slight decrease when compared with May 2022 (61%) and an increase when compared to June 2021 (57%)
• In June 2022, Scotland was the fastest selling region, with 78% of homes SSTC within 30 days of first being listed for sale. Greater London had the lowest number of properties which were SSTC within 30 days (49%)
• In June 2022, the region with the most number of properties which had taken 120 days or longer to SSTC was Greater London (13%) compared to Scotland which had the lowest number of properties that had taken 120 days or more to move to SSTC status (3%)

Kindly shared by OnTheMarket

Main article photo courtesy of Pixabay