A remarkable level of buyer and seller confidence in the housing market prevailed in May, despite considerable headwinds including soaring inflation and another interest rate hike by the Bank of England.
Against this backdrop, evidence is emerging of a rise in the number of new instructions, suggesting the start of an inevitable rebalancing of supply and demand in the market.
Yet this process will take time, and until then, the ‘new normal’, an elevated version of the pre-pandemic market continues, although regional differences in sentiment show that ‘one size does not fit all’.
Our data shows that sentiment remained positive in May with 82% of sellers confident that they could complete a sale within three months (the same percentage as in April, March and February 2022).
Serious buyers are determined to proceed, keen to take advantage of low mortgage rates while they can; in May, 75% were confident they would purchase within the next 3 months, only slightly down on 76% in April. Meanwhile, 61% of properties in the UK were SSTC within 30 days of first being advertised for sale in May, down slightly from 63% in April.
This month we are delighted to include TwentyCi research in a special edition of our Property Sentiment Index detailing actual stock levels, allowing us to measure sentiment against the reality of stock left on the market. With overall stock levels roughly the same as in May 2021, strong seller confidence comes as no surprise.
As we gradually move towards a more rebalanced market in terms of supply and demand, agents’ expertise and experience will be needed to hold complex chains together and maintain buyer and seller motivations throughout the coming months. The value of a good agent shouldn’t be underestimated and while sentiment remains undented for now, those who are the most prepared for their pending transaction will have the advantage.
