OnTheMarket : Property Sentiment Index – August 2023

Property Sentiment Index

August 2023	Chief Executive Officer
	Jason Tebb
(reporting on July 2023 data)

Business as usual as buyers and sellers exhibit remarkable resilience

76% 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

The housing market was remarkably resilient in July. Despite ongoing challenging economic conditions, persistently high inflation and the threat of more interest rate rises to come, serious buyers and sellers remained determined to move.

Once again, our data demonstrates that visitors to our website are serious property seekers, focused on moving, keen to make decisions and get transactions over the line. Our data shows that sentiment remained pretty consistent in July compared with the previous month, with 76% of UK buyers confident that they'd purchase a property within the next three months in July compared to 74% in June. Given all the challenges, it's all the more remarkable that more than three-quarters of would-be buyers remain convinced they will purchase a property in the coming quarter. This picture was consistent across the country with buyer sentiment improving in every region, apart from the West Midlands where there was a slight dip.

Given the time of year and usual seasonal slowdowns, one would expect a percentage point drop here or there to account for this. This seems to be the case with seller sentiment, which isn't as strong as the buyer equivalent, perhaps given the shift in the balance of power towards buyers. Seller sentiment on average fell by one percentage point in July, with 63% of UK sellers confident that they'd sell within the next three months compared to 64% in June. This average number masks some regional variations, with seller sentiment falling in the

42% of properties were Sold		Pricing property
Subject to Contract (SSTC)		correctly, assisted by an
within 30 days of first being		experienced local agent,
advertised for sale, compared		essential to achieving a
with 57% in July 2023		timely sale

South West by five percentage points to 55% in July from 60% in June. Such variations underline the importance of engaging with an experienced local agent if you are considering selling, in order to better understand what's going on in your region.

There are always those who need to move and these figures show that those people are getting on with it, as long as they can afford to do so. Properties SSTC within 30 days of first being listed for sale remained fairly consistent at 42% in July, compared with 43% in June. The major disruption that some predicted for the housing market this year has not materialised. Transaction figures are down slightly but nowhere near as low as some had forecast. Volatility has given way to a calmer, more stable period. Those who put their homes on the market at inflated prices will struggle to sell but if sellers take the advice of an experienced local agent, there is no reason why they won't transact, and in a timely manner.

Since July and the time period covered by this report, there has been another interest rate rise and it remains to be seen what will happen to sentiment in the coming months. There is a growing perception that base rate is near its peak and while rates may plateau rather than fall again immediately, this would at least enable buyers and sellers to plan ahead with more confidence. For now, it's business as usual.

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

Seller Sentiment - how confident were sellers in July 2023?

July 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 decrease when compared to June 2023 (64%)
• 28% of sellers were confident that they would sell their properties within the next 6 months, a slight increase when compared to June 2023 (26%)
• 4% of sellers were confident that they would sell their properties within the next 9 months, unchanged when compared to June 2023 (4%)
• 5% of sellers were confident that they would sell their home within the next 12 months, a slight decrease when compared to June 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

	Jul 23	Jun 23
Within next 3 months	72%	74%
Within next 6 months	18%	17%
Within next 9 months	4%	3%
Within next 12 months	6%	6%

North
West	Jul 23	Jun 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%
West
Midlands	Jul 23	Jun 23
	Within next 3 months	64%	67%
	Within next 6 months	29%	26%
	Within next 9 months	3%	4%
	Within next 12 months	4%	3%
Wales	Jul 23	Jun 23
	Within next 3 months	61%	60%
	Within next 6 months	29%	29%
	Within next 9 months	5%	5%
	Within next 12 months	5%	6%
South
West	Jul 23	Jun 23
	Within next 3 months	55%	60%
	Within next 6 months	35%	29%
	Within next 9 months	5%	5%
	Within next 12 months	5%	6%
South
East	Jul 23	Jun 23
	Within next 3 months	62%	60%
	Within next 6 months	29%	28%
	Within next 9 months	4%	5%
	Within next 12 months	5%	7%

		North
		East	Jul 23	Jun 23
		Within next 3 months	66%	66%
		Within next 6 months	26%	25%
		Within next 9 months	3%	5%
		Within next 12 months	5%	4%
		Yorkshire
		& The Humber	Jul 23	Jun 23
		Within next 3 months	64%	66%
		Within next 6 months	21%	27%
		Within next 9 months	5%	3%
		Within next 12 months	10%	4%
		East
		Midlands	Jul 23	Jun 23
		Within next 3 months	57%	58%
		Within next 6 months	31%	30%
		Within next 9 months	5%	4%
		Within next 12 months	7%	8%
		East Of
		England	Jul 23	Jun 23
		Within next 3 months	60%	56%
		Within next 6 months	31%	33%
		Within next 9 months	4%	4%
		Within next 12 months	5%	7%

		Greater
		London	Jul 23	Jun 23
		Within next 3 months	66%	64%
		Within next 6 months	28%	24%
		Within next 9 months	4%	7%
		Within next 12 months	2%	5%

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

Buyer Sentiment - how confident were buyers in July 2023?

July 2023 Headlines

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

• 76% of buyers were confident that they would purchase a property within the next 3 months, a slight increase when compared to June 2023 (74%)
• 16% of buyers were confident that they would purchase a property within the next 6 months, a slight decrease when compared to June 2023 (17%)
• 3% of buyers were confident that they would purchase a property within the next 9 months, unchanged when compared to June 2023 (3%)
• 5% of buyers were confident that they would purchase a property within the next 12 months, a slight decrease when compared to June 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

	Jul 23	Jun 23
Within next 3 months	81%	79%
Within next 6 months	12%	12%
Within next 9 months	2%	2%
Within next 12 months	5%	7%

North
West	Jul 23	Jun 23
	Within next 3 months	79%	77%
	Within next 6 months	14%	15%
	Within next 9 months	2%	3%
	Within next 12 months	5%	5%
West
Midlands	Jul 23	Jun 23
	Within next 3 months	75%	76%
	Within next 6 months	18%	17%
	Within next 9 months	3%	3%
	Within next 12 months	4%	4%
Wales	Jul 23	Jun 23
	Within next 3 months	72%	70%
	Within next 6 months	19%	20%
	Within next 9 months	3%	3%
	Within next 12 months	6%	7%
South
West	Jul 23	Jun 23
	Within next 3 months	70%	69%
	Within next 6 months	20%	22%
	Within next 9 months	3%	3%
	Within next 12 months	7%	6%
South
East	Jul 23	Jun 23
	Within next 3 months	71%	70%
	Within next 6 months	20%	21%
	Within next 9 months	3%	3%
	Within next 12 months	6%	6%

		North
		East	Jul 23	Jun 23
		Within next 3 months	75%	72%
		Within next 6 months	17%	18%
		Within next 9 months	3%	3%
		Within next 12 months	5%	7%
		Yorkshire
		& The Humber	Jul 23	Jun 23
		Within next 3 months	77%	75%
		Within next 6 months	14%	16%
		Within next 9 months	3%	3%
		Within next 12 months	6%	6%
		East
		Midlands	Jul 23	Jun 23
		Within next 3 months	74%	72%
		Within next 6 months	17%	18%
		Within next 9 months	4%	4%
		Within next 12 months	5%	6%
		East Of
		England	Jul 23	Jun 23
		Within next 3 months	73%	71%
		Within next 6 months	18%	20%
		Within next 9 months	3%	3%
		Within next 12 months	6%	6%

		Greater
		London	Jul 23	Jun 23
		Within next 3 months	81%	78%
		Within next 6 months	12%	15%
		Within next 9 months	2%	2%
		Within next 12 months	5%	5%

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

Mover attitudes towards mortgage availability in July 2023

July 2023 headlines:

• As a UK average, in July 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 June 2023 (6%)
• London, the West Midlands and the North West jointly had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (22%). The South West had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (15%)
• As a UK average, 27% of movers hadn't considered applying for a mortgage before starting their property search, with buyers in Greater London and the West Midlands the least likely to have considered applying for a mortgage before starting their search for a property (31%)
• 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 (22%). 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

	Jul 23	Jun 23	Jul 23	Jun 23	Jul 23	Jun 23	Jul 23	Jun 23	Jul 23	Jun 23	Jul 23	Jun 23
Grand Total	2%	2%	4%	4%	12%	11%	20%	22%	35%	33%	27%	28%
London	3%	2%	5%	5%	17%	12%	22%	25%	22%	22%	31%	34%
South East	2%	2%	5%	5%	10%	10%	21%	22%	34%	34%	28%	27%
South West	2%	1%	2%	4%	11%	11%	15%	17%	45%	42%	25%	25%
East of England	2%	1%	4%	4%	10%	8%	17%	21%	37%	36%	30%	30%
West Midlands	2%	2%	5%	5%	11%	11%	22%	24%	29%	29%	31%	29%
East Midlands	2%	3%	5%	5%	15%	10%	20%	21%	31%	30%	27%	31%
Yorkshire and	2%	2%	4%	5%	14%	14%	21%	21%	32%	32%	27%	26%
The Humber
North East	2%	1%	3%	4%	12%	12%	20%	21%	36%	36%	27%	26%
North West	2%	2%	4%	4%	16%	13%	22%	24%	30%	32%	26%	25%
Wales	2%	1%	3%	2%	10%	9%	20%	24%	43%	41%	22%	23%
Scotland	3%	1%	3%	3%	10%	11%	18%	19%	41%	43%	25%	23%

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

Most popular Wish List searches

and average asking prices in July 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

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

Jul

Jun

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

July 23

June 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 - July 2023

UK Average (excl. Greater London)

Type	Jul 23	June 23	Jul 22
Detached	£591,768	£595,239	£617,031
Semi-detached	£363,344	£365,805	£364,394
Terraced	£279,998	£282,794	£276,457
Flat/maisonette	£236,830	£237,067	£237,880
Grand Total	£418,442	£422,172	£413,104

Greater London

Type	Jul 23	Jun 23	Jul 22
Detached	£1,987,180	£1,973,056	£2,043,301
Semi-detached	£1,154,403	£1,194,536	£1,313,180
Terraced	£1,244,187	£1,300,318	£1,388,101
Flat/maisonette	£870,198	£876,166	£950,370
Grand Total	£1,028,204	£1,046,122	£1,099,677

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