ON MARKPAR Property Sentiment Index
July 2023 | Jason Tebb |
Chief Executive Officer | |
(reporting on June 2023 data) | |
Property market sentiment remarkably stable despite economic uncertainty
74% of active buyers in | 64% of sellers in the UK | |
the UK were confident | were confident that they | |
that they would purchase | would sell their property | |
a property within the next | within the next 3 months | |
3 months | ||
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. 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. Our data shows that confidence levels remain pretty constant, up slightly on last month (in June, 74% of UK buyers were confident that they'd purchase a property within the next three months compared to 73% in May), or down slightly (64% of UK sellers were confident that they'd sell within the next three months in June compared to 65% in May).
People move for a variety of reasons, so while for some this may not be an opportune time to do so, others are carrying on regardless. It's pretty impressive that nearly half of all properties (43%) were Sold Subject to Contract within 30 days of first being listed for sale in June, a slight improvement on May's 42%.
43% of properties were Sold | Motivated | |
Subject to Contract (SSTC) | buyers and sellers | |
within 30 days of first being | carry on regardless | |
advertised for sale, compared | ||
with 60% in June 2022 |
Admittedly, this is way off where we were this time last year (60% in June 2022) but the housing market was very different then, one of the busiest since records began, with less stock available and sellers in the driving seat.
There are regional outliers, as there is no such thing as a single housing market. While some regions haven't witnessed much change in seller sentiment, in others there has been a marked shift with sentiment declining in Wales (a 6 percentage-point drop from 66% in May to 60% in June), the East Midlands (a 7 percentage-point drop from 65% in May to 58% in June) and an 8 percentage-point fall in the East of England (from 64% in May to 56% in June).
In the case of Wales and the East Midlands, where average property prices are below the national average and therefore more likely to attract first-time buyers, first-time sellers on modest budgets themselves may be more concerned than most about higher borrowing costs and the impact these will have on their sale.
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.
For all media enquiries and interviews please contact the OnTheMarket press office: natasha.afxentiou@onthemarket.com | 1 |
www.onthemarket.com |
Seller Sentiment - how confident were sellers in June 2023?
June 2023 Headlines
From our sample of sellers surveyed, UK average rates of confidence over the last month were as follows:
- 64% of sellers were confident that they would sell their property within the next 3 months, a slight decrease when compared to May 2023 (65%)
- 26% of sellers were confident that they would sell their properties within the next 6 months, unchanged when compared to May 2023 (26%)
- 4% of sellers were confident that they would sell their properties within the next 9 months, unchanged when compared to May 2023 (4%)
- 6% of sellers were confident that they would sell their home within the next 12 months, a slight increase when compared to May 2023 (5%)
The OnTheMarket Property Sentiment Survey asks sellers across the UK how confident they feel about selling their home in order to provide a 'temperature check' of market sentiment both on a national and regional basis.
Sellers are asked to indicate how confident they are that they will sell their home:
- Within the next 3 months
- Within the next 6 months
- Within the next 9 months
- Within the next 12 months
>5% increase on previous month <5% increase and <5% decrease on previous month >5% decrease on previous month
(based on Seller confidence within next 3 months)
Scotland
Jun 23 | May 23 | |
Within next 3 months | 74% | 72% |
Within next 6 months | 17% | 20% |
Within next 9 months | 3% | 2% |
Within next 12 months | 6% | 6% |
North | |||||
West | Jun 23 | May 23 | |||
Within next 3 months | 70% | 67% | |||
Within next 6 months | 21% | 24% | |||
Within next 9 months | 4% | 4% | |||
Within next 12 months | 5% | 5% | |||
West | |||||
Midlands | Jun 23 | May 23 | |||
Within next 3 months | 67% | 65% | |||
Within next 6 months | 26% | 27% | |||
Within next 9 months | 4% | 4% | |||
Within next 12 months | 3% | 4% | |||
Wales | Jun 23 | May 23 | |||
Within next 3 months | 60% | 66% | |||
Within next 6 months | 29% | 24% | |||
Within next 9 months | 5% | 3% | |||
Within next 12 months | 6% | 7% | |||
South | |||||
West | Jun 23 | May 23 | |||
Within next 3 months | 60% | 63% | |||
Within next 6 months | 29% | 28% | |||
Within next 9 months | 5% | 4% | |||
Within next 12 months | 6% | 5% | |||
South | |||||
East | Jun 23 | May 23 | |||
Within next 3 months | 60% | 64% | |||
Within next 6 months | 28% | 28% | |||
Within next 9 months | 5% | 3% | |||
Within next 12 months | 7% | 5% | |||
North | |||||
East | Jun 23 | May 23 | |||
Within next 3 months | 66% | 63% | |||
Within next 6 months | 25% | 28% | |||
Within next 9 months | 5% | 4% | |||
Within next 12 months | 4% | 5% | |||
Yorkshire | |||||
& The Humber | Jun 23 | May 23 | |||
Within next 3 months | 66% | 62% | |||
Within next 6 months | 27% | 28% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 4% | 7% | |||
East | |||||
Midlands | Jun 23 | May 23 | |||
Within next 3 months | 58% | 65% | |||
Within next 6 months | 30% | 23% | |||
Within next 9 months | 4% | 5% | |||
Within next 12 months | 8% | 7% | |||
East Of | |||||
England | Jun 23 | May 23 | |||
Within next 3 months | 56% | 64% | |||
Within next 6 months | 33% | 26% | |||
Within next 9 months | 4% | 6% | |||
Within next 12 months | 7% | 4% | |||
Greater | |||||
London | Jun 23 | May 23 | |||
Within next 3 months | 64% | 67% | |||
Within next 6 months | 24% | 26% | |||
Within next 9 months | 7% | 3% | |||
Within next 12 months | 5% | 4% | |||
For all media enquiries and interviews please contact the OnTheMarket press office: natasha.afxentiou@onthemarket.com | 2 |
www.onthemarket.com |
Buyer Sentiment - how confident were buyers in June 2023?
June 2023 Headlines
From our sample of buyers surveyed, UK average rates of confidence over the last month were as follows:
- 74% of buyers were confident that they would purchase a property within the next 3 months, a slight increase when compared to May 2023 (73%)
- 17% of buyers were confident that they would purchase a property within the next 6 months, a slight decrease when compared to May 2023 (19%)
- 3% of buyers were confident that they would purchase a property within the next 9 months, unchanged when compared to May 2023 (3%)
- 6% of buyers were confident that they would purchase a property within the next 12 months, a slight increase when compared to May 2023 (5%)
The OnTheMarket Property Sentiment Survey asks buyers across the UK how confident they feel about purchasing their next property in order to provide a 'temperature check' of market sentiment both on a national and regional basis.
Buyers are asked to indicate how confident they are that they will purchase their next property:
- Within the next 3 months
- Within the next 6 months
- Within the next 9 months
- Within the next 12 months
>5% increase on previous month <5% increase and <5% decrease on previous month >5% decrease on previous month
(based on Buyer confidence within next 3 months)
Scotland
Jun 23 | May 23 | |
Within next 3 months | 79% | 78% |
Within next 6 months | 12% | 14% |
Within next 9 months | 2% | 2% |
Within next 12 months | 7% | 6% |
North | |||||
West | Jun 23 | May 23 | |||
Within next 3 months | 77% | 76% | |||
Within next 6 months | 15% | 17% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 5% | 4% | |||
West | |||||
Midlands | Jun 23 | May 23 | |||
Within next 3 months | 76% | 73% | |||
Within next 6 months | 17% | 20% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 4% | 4% | |||
Wales | Jun 23 | May 23 | |||
Within next 3 months | 70% | 71% | |||
Within next 6 months | 20% | 21% | |||
Within next 9 months | 3% | 2% | |||
Within next 12 months | 7% | 6% | |||
South | |||||
West | Jun 23 | May 23 | |||
Within next 3 months | 69% | 68% | |||
Within next 6 months | 22% | 23% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 6% | 6% | |||
South | |||||
East | Jun 23 | May 23 | |||
Within next 3 months | 70% | 70% | |||
Within next 6 months | 21% | 22% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 6% | 5% | |||
North | |||||
East | Jun 23 | May 23 | |||
Within next 3 months | 72% | 73% | |||
Within next 6 months | 18% | 19% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 7% | 5% | |||
Yorkshire | |||||
& The Humber | Jun 23 | May 23 | |||
Within next 3 months | 75% | 74% | |||
Within next 6 months | 16% | 18% | |||
Within next 9 months | 3% | 3% | |||
Within next 12 months | 6% | 5% | |||
East | |||||
Midlands | Jun 23 | May 23 | |||
Within next 3 months | 72% | 72% | |||
Within next 6 months | 18% | 19% | |||
Within next 9 months | 4% | 3% | |||
Within next 12 months | 6% | 6% | |||
East Of | |||||
England | Jun 23 | May 23 | |||
Within next 3 months | 71% | 69% | |||
Within next 6 months | 20% | 21% | |||
Within next 9 months | 3% | 4% | |||
Within next 12 months | 6% | 6% | |||
Greater | |||||
London | Jun 23 | May 23 | |||
Within next 3 months | 78% | 75% | |||
Within next 6 months | 15% | 18% | |||
Within next 9 months | 2% | 2% | |||
Within next 12 months | 5% | 5% | |||
For all media enquiries and interviews please contact the OnTheMarket press office: natasha.afxentiou@onthemarket.com | 3 |
www.onthemarket.com |
Mover attitudes towards mortgage availability in June 2023
June 2023 headlines:
- As a UK average, in June 2023 only 6% 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 2023 (6%)
- 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 (25%). The South West had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (17%)
- As a UK average, 28% 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 (34%)
- 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 (22%). Scotland had the highest number of respondents who indicated that they didn't need a mortgage to buy their next home (43%)
The OnTheMarket Property Sentiment Index provides insights in terms of how confident movers across the UK feel about securing a mortgage in order to fund the purchase of their next property. Since increased affordability assessments were introduced by lenders in 2014 as part of the Mortgage Market Review, the ability to both successfully secure a mortgage and borrow enough to fund a property purchase are key factors which can have a significant impact on home mover sentiment.
Respondents to the OnTheMarket survey are asked to indicate how they feel about raising the necessary funds to purchase their next property by choosing from the following options:
- I'm very worried
- I'm slightly concerned
- I'm sure it will be fine
- I have a mortgage Agreement in Principle already
- I don't need a mortgage to buy a property
- I've not thought about it
I'm very worried
I'm slightly concerned
I'm sure it will
be fine
I've already got a mortgage AIP
I don't need a
mortgage
I've not thought
about it yet
Jun 23 | May 23 | Jun 23 | May 23 | Jun 23 | May 23 | Jun 23 | May 23 | Jun 23 | May 23 | Jun 23 | May 23 | |
Grand Total | 2% | 2% | 4% | 4% | 11% | 10% | 22% | 23% | 33% | 33% | 28% | 28% |
London | 2% | 3% | 5% | 4% | 12% | 12% | 25% | 26% | 22% | 22% | 34% | 33% |
South East | 2% | 1% | 5% | 6% | 10% | 8% | 22% | 23% | 34% | 35% | 27% | 27% |
South West | 1% | 2% | 4% | 4% | 11% | 8% | 17% | 18% | 42% | 45% | 25% | 23% |
East of England | 1% | 2% | 4% | 5% | 8% | 9% | 21% | 21% | 36% | 35% | 30% | 28% |
West Midlands | 2% | 2% | 5% | 5% | 11% | 9% | 24% | 27% | 29% | 29% | 29% | 28% |
East Midlands | 3% | 2% | 5% | 4% | 10% | 9% | 21% | 21% | 30% | 33% | 31% | 31% |
Yorkshire and | 2% | 2% | 5% | 5% | 14% | 12% | 21% | 22% | 32% | 31% | 26% | 28% |
The Humber | ||||||||||||
North East | 1% | 1% | 4% | 4% | 12% | 13% | 21% | 23% | 36% | 33% | 26% | 26% |
North West | 2% | 2% | 4% | 4% | 13% | 12% | 24% | 26% | 32% | 30% | 25% | 26% |
Wales | 1% | 1% | 2% | 3% | 9% | 7% | 24% | 24% | 41% | 42% | 23% | 23% |
Scotland | 1% | 3% | 3% | 3% | 11% | 9% | 19% | 19% | 43% | 40% | 23% | 26% |
For all media enquiries and interviews please contact the OnTheMarket press office: natasha.afxentiou@onthemarket.com | 4 |
www.onthemarket.com |
Most popular Wish List searches
and average asking prices in June 2023
Most popular Wish List searches
Using data collated from our Wish List tool on OnTheMarket.com, which allows property seekers to enter features they'd like in their next property to return search results most suited to their requirements, we're able to look at the top five most popular search terms per region and the top three searches as a UK average.
Top 5 Wish List searches per region
East | East of | North | North | South | South | West | Yorkshire | ||||||||||||||
London | Scotland | Wales | and the | ||||||||||||||||||
Midlands | England | East | West | East | West | Midlands | |||||||||||||||
Humber | |||||||||||||||||||||
Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May | Jun | May |
23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 | 23 |
1
2
3
4
5
Top 3 Wish List searches UK average
June 23 | May 23 |
1
2
3
Key
Garden | Parking | Garage |
Large | Off-street | Rural |
Garden | parking | |
Double | Character | With |
Garage | Property | Land |
Outbuildings
Outside
Space
Average asking prices - June 2023
UK Average (excl. Greater London)
Type | Jun 23 | May 23 | Jun 22 |
Detached | £595,239 | £581,592 | £623,209 |
Semi-detached | £365,805 | £363,177 | £365,412 |
Terraced | £282,794 | £281,201 | £277,204 |
Flat/maisonette | £237,067 | £237,545 | £238,074 |
Grand Total | £422,172 | £414,580 | £413,444 |
Greater London
Type | Jun 23 | May 23 | Jun 22 |
Detached | £1,973,056 | £1,912,769 | £2,081,386 |
Semi-detached | £1,194,536 | £1,185,900 | £1,414,526 |
Terraced | £1,300,318 | £1,273,020 | £1,375,645 |
Flat/maisonette | £876,166 | £881,144 | £936,078 |
Grand Total | £1,046,122 | £1,038,933 | £1,098,244 |
For all media enquiries and interviews please contact the OnTheMarket press office: natasha.afxentiou@onthemarket.com | 5 |
www.onthemarket.com |
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Onthemarket plc published this content on 18 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2023 08:32:10 UTC.
