OnTheMarket : Property Sentiment Index – April 2023

Under embargo until 00:01hrs on 18.04.23

Property Sentiment Index

April 2023	Jason Tebb
Chief Executive Officer
(reporting on March 2023 data)

Spring optimism is in the air, as buyer and seller sentiment strengthens

71% of active buyers in		63% 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

As the days grow longer and warmer, the green shoots of the housing market are increasingly evident. Medium-term confidence increased in March as the uncertainty caused by the mini-Budget last autumn continued to subside, with nearly three-quarters of UK buyers (71%) confident that they'd purchase a property within the next three months, compared to 69% in February.

Our data suggests remarkable resilience in the face of significant macro-economic turmoil; and despite considerable headwinds, the homebuying public is pressing on. As well as an increase in confidence among buyers, our data also shows a small increase in confidence among sellers who were confident they'd sell their property within the next three months in March (63% compared with 62% in February). Naturally, there are some regional variations as one size doesn't fit all when

it comes to the market, with seller confidence in the East of England falling from 65% in February to 60% in March, while seller confidence also slipped in Wales, from 64% of sellers confident they'd sell their properties in the next three months in February to 59% in March. However, in the South East, confidence rose with 64% of sellers confident of a sale within three months in March compared to 59% in February.

Nearly half of all properties (45%) were SSTC within 30 days of first being advertised for sale in March, further underlining the upwards trends in confidence and positivity. While this number is down on the same period last year, the market is very different as it continues to rebalance in a measured way. These numbers also suggest that it's returning to business-as-usual for UK prospective buyers, despite some negative reporting around pricing. Average property prices have softened a little,

45% of properties were Sold		Experienced
Subject to Contract (SSTC)		local agents crucial to
within 30 days of first being		pricing property correctly
advertised for sale, compared
with 64% in March 2022

although this is within the context of the value of the average home rising by £17,000 in the past year, according to the latest ONS/Land Registry figures, at a time when many predicted they would fall. Now that the stamp duty holiday is over and the cost of living has risen, prices aren't rising in some regions, although we aren't seeing a major nationwide correction, and the gradual rebalancing of the market does not seem to have dented confidence.

The war on inflation continues and while it has ticked up again, the Bank of England's Monetary Policy Committee is expecting it to halve by the end of the year. March's Budget didn't include anything to help first-time buyers, but equally there was nothing to dampen sentiment. Mortgage pricing has been volatile and with some of the bigger lenders reducing their five-yearfixed-rate mortgages below the 4 per cent barrier, this should reassure borrowers. Latest Bank of England figures on mortgage approvals show they're moving in the right direction, although they're lower than the volumes seen during the height of the pandemic.

On the whole, it seems to be more like business as usual for the market as we head into spring. As the sun makes a more regular appearance, more properties are coming to market looking their best, and there's growing expectation as to what the next few months have in store. There is, however, still a need to be cautious; motivated sellers must not get carried away, but be realistic in their pricing and listen to the advice of a professional local agent, particularly if they're keen to sell within that magic 30-day window. With buyers and sellers seemingly increasingly confident, there is plenty to be positive about.

For all media enquiries and interviews please contact the OnTheMarket press office: [e-mail]	1
www.onthemarket.com

Under embargo until 00:01hrs on 18.04.23

Seller Sentiment - how confident were sellers in March 2023?

March 2023 Headlines

From our sample of sellers surveyed, UK average rates of confidence over the last month were as follows:

• 63% of sellers were confident that they would sell their property within the next 3 months, a slight increase when compared to February 2023 (62%)
• 27% of sellers were confident that they would sell their properties within the next 6 months, a slight decrease when compared to February 2023 (28%)
• 4% of sellers were confident that they would sell their properties within the next 9 months, unchanged when compared to February 2023 (4%)
• 6% of sellers were confident that they would sell their home within the next 12 months, unchanged when compared to February 2023 (6%)

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

	Mar 23	Feb 23
Within next 3 months	66%	62%
Within next 6 months	26%	25%
Within next 9 months	3%	5%
Within next 12 months	5%	8%

North
West	Mar 23	Feb 23
	Within next 3 months	65%	63%
	Within next 6 months	25%	27%
	Within next 9 months	5%	4%
	Within next 12 months	5%	6%
West
Midlands	Mar 23	Feb 23
	Within next 3 months	65%	63%
	Within next 6 months	27%	26%
	Within next 9 months	4%	4%
	Within next 12 months	4%	7%
Wales	Mar 23	Feb 23
	Within next 3 months	59%	64%
	Within next 6 months	27%	26%
	Within next 9 months	5%	4%
	Within next 12 months	9%	6%
South
West	Mar 23	Feb 23
	Within next 3 months	58%	60%
	Within next 6 months	31%	29%
	Within next 9 months	4%	5%
	Within next 12 months	7%	6%
South
East	Mar 23	Feb 23
	Within next 3 months	64%	59%
	Within next 6 months	26%	30%
	Within next 9 months	4%	5%
	Within next 12 months	6%	6%

		North
		East	Mar 23	Feb 23
		Within next 3 months	64%	61%
		Within next 6 months	24%	29%
		Within next 9 months	4%	4%
		Within next 12 months	8%	6%
		Yorkshire
		& The Humber	Mar 23	Feb 23
		Within next 3 months	67%	64%
		Within next 6 months	23%	25%
		Within next 9 months	3%	5%
		Within next 12 months	7%	6%
		East
		Midlands	Mar 23	Feb 23
		Within next 3 months	58%	58%
		Within next 6 months	31%	31%
		Within next 9 months	5%	5%
		Within next 12 months	6%	6%
		East Of
		England	Mar 23	Feb 23
		Within next 3 months	60%	65%
		Within next 6 months	29%	27%
		Within next 9 months	6%	3%
		Within next 12 months	5%	5%

		Greater
		London	Mar 23	Feb 23
		Within next 3 months	63%	67%
		Within next 6 months	29%	23%
		Within next 9 months	4%	4%
		Within next 12 months	4%	6%

For all media enquiries and interviews please contact the OnTheMarket press office: [e-mail]	2
www.onthemarket.com

Under embargo until 00:01hrs on 18.04.23

Buyer Sentiment - how confident were buyers in March 2023?

March 2023 Headlines

From our sample of buyers surveyed, UK average rates of confidence over the last month were as follows:

• 71% of buyers were confident that they would purchase a property within the next 3 months, a slight increase when compared to February 2023 (69%)
• 20% of buyers were confident that they would purchase a property within the next 6 months, a slight decrease when compared to February 2023 (21%)
• 3% of buyers were confident that they would purchase a property within the next 9 months, a slight decrease when compared to February 2023 (4%)
• 6% of buyers were confident that they would purchase a property within the next 12 months, unchanged when compared to February 2023 (6%)

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

	Mar 23	Feb 23
Within next 3 months	72%	71%
Within next 6 months	18%	18%
Within next 9 months	3%	4%
Within next 12 months	7%	7%

North
West	Mar 23	Feb23
	Within next 3 months	74%	73%
	Within next 6 months	18%	19%
	Within next 9 months	3%	3%
	Within next 12 months	5%	5%
West
Midlands	Mar 23	Feb 23
	Within next 3 months	72%	71%
	Within next 6 months	19%	19%
	Within next 9 months	3%	4%
	Within next 12 months	6%	6%
Wales	Mar 23	Feb 23
	Within next 3 months	66%	69%
	Within next 6 months	24%	22%
	Within next 9 months	3%	3%
	Within next 12 months	7%	6%
South
West	Mar 23	Feb 23
	Within next 3 months	67%	64%
	Within next 6 months	23%	26%
	Within next 9 months	3%	4%
	Within next 12 months	7%	6%
South
East	Mar23	Feb 23
	Within next 3 months	69%	66%
	Within next 6 months	21%	24%
	Within next 9 months	4%	4%
	Within next 12 months	6%	6%

		North
		East	Mar 23	Feb 23
		Within next 3 months	72%	70%
		Within next 6 months	20%	21%
		Within next 9 months	3%	4%
		Within next 12 months	5%	5%
		Yorkshire
		& The Humber	Mar 23	Feb 23
		Within next 3 months	73%	69%
		Within next 6 months	18%	21%
		Within next 9 months	3%	4%
		Within next 12 months	6%	6%
		East
		Midlands	Mar 23	Feb 23
		Within next 3 months	69%	69%
		Within next 6 months	22%	22%
		Within next 9 months	4%	4%
		Within next 12 months	5%	5%
		East Of
		England	Mar 23	Feb 23
		Within next 3 months	69%	68%
		Within next 6 months	21%	22%
		Within next 9 months	4%	5%
		Within next 12 months	6%	5%

		Greater
		London	Mar 23	Feb 23
		Within next 3 months	73%	72%
		Within next 6 months	19%	20%
		Within next 9 months	3%	3%
		Within next 12 months	5%	5%

For all media enquiries and interviews please contact the OnTheMarket press office: [e-mail]	3
www.onthemarket.com

Under embargo until 00:01hrs on 18.04.23

Mover attitudes towards mortgage availability in March 2023

March 2023 headlines:

• As a UK average, in March 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 February 2023 (6%)
• Wales had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (26%). 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, 27% 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 (32%)
• As a UK average, 35% 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 (24%). The South West had the highest number of respondents who indicated that they didn't need a mortgage to buy their next home (45%)

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

	Mar 23	Feb 23	Mar 23	Feb 23	Mar 23	Feb 23	Mar 23	Feb 23	Mar 23	Feb 23	Mar 23	Feb 23
UK average	2%	2%	4%	4%	10%	11%	22%	22%	35%	35%	27%	26%
Greater London	4%	2%	5%	5%	13%	15%	22%	24%	24%	23%	32%	31%
South East	2%	2%	4%	5%	9%	9%	21%	21%	36%	37%	28%	26%
South West	2%	1%	4%	4%	9%	9%	17%	18%	45%	43%	23%	25%
East of England	2%	2%	4%	5%	10%	10%	19%	17%	35%	37%	30%	29%
West Midlands	2%	2%	4%	4%	10%	12%	25%	26%	32%	29%	27%	27%
East Midlands	1%	2%	4%	5%	13%	12%	21%	20%	33%	34%	28%	27%
Yorkshire &	1%	2%	3%	5%	10%	13%	22%	23%	37%	32%	27%	25%
The Humberside
North East	1%	2%	4%	4%	12%	14%	21%	21%	37%	35%	25%	24%
North West	2%	1%	4%	4%	13%	13%	25%	26%	32%	30%	24%	26%
Wales	1%	1%	2%	3%	7%	11%	26%	25%	41%	38%	23%	22%
Scotland	1%	1%	2%	3%	8%	9%	21%	20%	43%	42%	25%	25%

For all media enquiries and interviews please contact the OnTheMarket press office: [e-mail]	4
www.onthemarket.com

Under embargo until 00:01hrs on 18.04.23

Most popular Wish List searches

and average asking prices in March 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

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

Mar

Feb

23

23

23

23

23

23

23

23

23

23

23

23

23

23

23

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23

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23

23

23

23

1

2

3

4

5

Top 3 Wish List searches UK average

March 23

February 23

1

2

3

Key

Garden	Parking	Garage
Large	Off-street	Rural
Garden	parking
Double	Character	With
Garage	Property	Land

Average asking prices - March 2023

UK Average (excl. Greater London)

Type	March 23	February 23	March 22
Detached	£561,230	£554,497	£571,396
Semi-Detached	£352,818	£349,238	£347,457
Terraced	£273,843	£270,772	£269,688
Flat	£234,511	£234,563	£229,900
Average	£395,001	£389,910	£378,915

Greater London

Type	March 23	February 23	March 22
Detached	£1,834,840	£1,837,272	£2,072,898
Semi-Detached	£1,133,383	£1,132,121	£1,301,562
Terraced	£1,222,746	£1,209,404	£1,277,569
Flat	£860,185	£877,537	£943,678
Average	£1,000,906	£1,008,035	£1,070,475

For all media enquiries and interviews please contact the OnTheMarket press office: [e-mail]	5
www.onthemarket.com