The latest OnTheMarket Property Sentiment Index shows that buyer sentiment has remained fairly consistent, with just under three-quarters – 71% – confident that they would purchase a property within the next three months in November, compared to 72% in October.
Seller confidence was lower and down slightly month-on-month, with 56% of UK sellers confident that they would sell within the next three months in November, down from 58% in October. However, this is all the more impressive when you consider the seasonal effects at play at this time of year, according to Jason Tebb, CEO of OnTheMarket.
He said: “Essentially, more than half of vendors believe they will sell within three months, even though this includes the festive period and January, which often gets off to a slow start.
“Regionally, there were some significant variations with a six percentage-point decrease in seller confidence in Scotland, while the East Midlands saw a seven percentage-point increase in confidence, illustrating that instead of a single, homogenous market there are many local markets, susceptible to different influences.”
Tebb highlighted that just under a third of properties – 33% – were sold subject to contract within 30 days of first being listed for sale in November, down from 36% in October. This is the lowest level seen this year, suggesting stock levels are rising, providing more choice for serious property seekers and even more reason for those serious about selling to price sensibly.
He continued: “There were growing mortgage concerns among some respondents, with 8% very worried or slightly concerned about securing a mortgage in November compared with 4% in October. This could be down to the month-on-month uptick in property prices as reported by Nationwide and Halifax, contradicting forecasters who had predicted that the market would tank.
“Those waiting for a 10% drop in prices may now be realising that as this hasn’t materialised, they will have to take on a bigger mortgage than they originally planned, and don’t relish doing so in a high-rate environment. However, there is good news on the mortgage front; swap rates, which underpin the pricing of fixed-rate mortgages, continue to fall. Lenders need to lend and continue to reduce their fixed-rate mortgages to attract new business, with two- and five-year fixes now available from less than 4.5%.
“Although borrowers must get used to a higher-rate environment, levels of confidence among buyers and sellers are surprisingly good. Those who want to get on with the business of moving are doing just that, and where sentiment fluctuates, it’s only by a few percentage points, demonstrating a resilient buyer and seller cohort shaking off what is happening macro-economically and simply getting on with it. Provided property is priced attractively, it is entirely possible to attract serious buyers.”
