OnTheMarket publish their Property Sentiment Index, Special Edition June 2022
OnTheMarket publish their Property Sentiment Index, Special Edition June 2022, detailing the difference between sentiment and reality.
Housing market supply-demand starts to rebalance as remarkable buyer and seller confidence prevails.
Other headlines from publication:
- As a UK average, in May 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 April 2022 (4%)
- Greater London and the North West jointly had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (45%). The South West had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (31%)
- 75% of active buyers in the UK were confident that they would purchase a property within the next 3 months
- 82% of sellers in the UK were confident that they would sell their property within the next 3 months
- 61% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 55% in May 2021
- Rising numbers of new instructions means change is likely
A remarkable level of buyer and seller confidence in the housing market prevailed in May, despite considerable headwinds including soaring inflation and another interest rate hike by the Bank of England. Against this backdrop, evidence is emerging of a rise in the number of new instructions, suggesting the start of an inevitable rebalancing of supply and demand in the market. Yet this process will take time, and until then, the ‘new normal’, an elevated version of the pre-pandemic market continues, although regional differences in sentiment show that ‘one size does not fit all’.
Our data shows that sentiment remained positive in May with 82% of sellers confident that they could complete a sale within three months (the same percentage as in April, March and February 2022). Serious buyers are determined to proceed, keen to take advantage of low mortgage rates while they can; in May, 75% were confident they would purchase within the next 3 months, only slightly down on 76% in April. Meanwhile, 61% of properties in the UK were SSTC within 30 days of first being advertised for sale in May, down slightly from 63% in April.
This month we are delighted to include TwentyCi research in a special edition of our Property Sentiment Index detailing actual stock levels, allowing us to measure sentiment against the reality of stock left on the market. With overall stock levels roughly the same as in May 2021, strong seller confidence comes as no surprise.
As we gradually move towards a more rebalanced market in terms of supply and demand, agents’ expertise and experience will be needed to hold complex chains together and maintain buyer and seller motivations throughout the coming months. The value of a good agent shouldn’t be underestimated and while sentiment remains undented for now, those who are the most prepared for their pending transaction will have the advantage.
Kindly shared by OnTheMarket
Main article photo courtesy of Pixabay
