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Buyers and sellers remain confident about housing market prospects

Christina Hoghton
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Christina Hoghton

Consumers are bullish about buying and selling homes, despite the cost of living crisis

Three-quarters of active buyers in the UK were confident they would purchase a property within the next three months, according to OnTheMarket.com.

The property portal found that sellers were also feeling bullish, with 81% confident that they would sell their property within the next three months.

Sales data also looks strong, with six in 10 properties Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 57% in June 2021.

Jason Tebb, chief executive officer at OnTheMarket.com, said: “Buyer and seller sentiment remained strong in June, despite soaring inflation and the prospect of further interest rate rises creating sizeable headwinds for the housing market.

“A subtle rebalancing of the market inevitably continues as stock levels keep rising, partly down to the seasonal effect of summer when more homes traditionally come to market. This is leading to a steadier, more manageable environment after the frenzy of the past two years, a ‘new normal’ or elevated version of the pre-pandemic market.”

Inevitable readjustment

Tebb continued: “The readjustment in the housing market is inevitable as more stock becomes available and this will likely take several months for the effects to be seen. Whatever happens, those most serious about transacting will get on and do so.

“Even during the financial crisis of 2008, where residential transaction numbers halved compared with the previous year, there were still hundreds of thousands of sellers who moved because they had their reasons for doing so. While there are different headwinds facing the market now, these are not yet impacting the need or desire of many to move. HM Revenue & Customs reports that transaction numbers have stabilised in recent months but they remain somewhat elevated compared to before the pandemic.”