OnTheMarket: Sentiment remains strong despite slower market

Sentiment among movers is proving to be remarkably resilient despite the challenging news in recent months on mortgage rates, inflation, and volatility in house price growth, OnTheMarket (OTM) suggests.

The house-buying public appears reassuringly resolute when it comes to their home moves, despite considerable challenges created by the persistently high cost of living and consecutive interest rate rises. 

Of course, it all depends on how much people are motivated to buy or sell in the first instance, with anecdotal evidence suggesting that the more indecisive are using current market uncertainty as a reason to sit on their hands and not make their move until the outlook is clearer. 

Meanwhile, those serious about moving are pressing on, keen to make decisions and get deals done. 

The portal’s latest Property Sentiment Index found buyer and seller confidence remains stable.

It found that while 74% of buyers were confident about moving in the next three months, 64% of vendors are optimistic about getting a sale.

There are regional outliers though, with sentiment declining in Wales from 66% in May to 60% in June, the East Midlands saw a seven percentage-point drop from 65% in May to 58% in June and there was an eight percentage-point fall in the East of England from 64% in May to 56% in June. 

Half of all properties (43%) were Sold Subject to Contract within 30 days of first being listed for sale in June, OTM said, a slight improvement on May’s 42% but well behind the 60% in June 2022, showing how the market has changed.

OTM said anecdotal evidence suggests that the more indecisive are using current market uncertainty as a reason to sit on their hands and not make their move until the outlook is clearer. 

Jason Tebb, chief executive of OTM, added: “While there is still much uncertainty, it’s unlikely that we’ll return to rock-bottom interest rates in the near future. 

“The highly leveraged may have to cut back on discretionary spending more than those with substantial equity in their properties, but while further rate rises can’t be ruled out, the UK public seems to have developed a thick skin over the past year. Despite all the ups and downs, those committing to moving are still doing so. “