Housing Market Sentiment Remains Resilient in the UK
New data released by OnTheMarket on Thursday reveals that the sentiment in the UK housing market remained remarkably resilient in October. The property sentiment index, which gathered responses from over 80,000 consumers, shows that approximately 72% of prospective home buyers are confident they will carry out a property transaction within the next three months. While this indicates a slight slip from the 74% recorded in September, it overall demonstrates that the Bank of England’s decision to pause rate hikes has been well received by potential buyers. The bank has subsequently held off on further hikes for a second time in November.
Additionally, the data shows that 18% of respondents expressed confidence in purchasing a home within the next six months, which is a slight increase from the 17% recorded in September.
Jason Tebb, Chief Executive of OnTheMarket, stated, “Even if another rate rise is required to keep inflation in check, there’s a growing perception that the worst is behind us, although borrowers will have to get used to paying more for their mortgages than in recent years.”
However, the data also revealed that the number of properties sold subject to contract within 30 days of being advertised for sale has decreased. In comparison to the same period last year when 60% of properties were sold within 30 days, only 36% were sold at the same rate this year. This decline can be attributed to the economic shock experienced from former Prime Minister Liz Truss’s so-called Minibudget. Nevertheless, this figure remains consistent with September’s numbers, suggesting that the market has broadly stabilized.
Despite the slight decline in sentiment and confidence in certain areas, Tebb points out that “the overriding sense is that people are breathing a sigh of relief.”
The UK housing market continues to show signs of resilience, with potential buyers remaining optimistic about their prospects of carrying out property transactions. While uncertainties still loom, such as the possibility of future rate hikes and the impact this may have on mortgage repayments, there is a growing perception that the worst may be behind us. As the market stabilizes, both buyers and sellers can find some reassurance in the overall positive sentiment expressed by those involved.
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More detail via MarketWatch here… ( Image via MarketWatch )