OnTheMarket : Property Sentiment Index – June 2023

Property Sentiment Index

June 2023	Jason Tebb
Chief Executive Officer
(reporting on May 2023 data)

Rate volatility evident but buyer and seller sentiment remains strong

73% of active buyers in		65% 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

Despite a decline in transaction numbers in April, rising transaction and mortgage approval numbers in March indicated that the market had shaken off the travails of the autumn and the fallout from the mini-Budget, with house prices continuing to soften slightly and settle into a 'new normal'. Mortgage pricing also calmed, with borrowers accepting that rates are going to be higher than has been typical over the past few years. However, it would appear that volatility in the housing market is not fully behind us, with the latest news on inflation sending Swap rates higher and increasing the price of fixed-rate mortgages once again.

That said, buyer and seller sentiment was not rocked during May. Our data for May shows 73% of UK buyers were confident that they'd purchase a property within the next three months, compared to 70% in April. Regional differences demonstrate positivity even more starkly, with 75% of London buyers confident they'd purchase a property within the next three months, up from 71% in April. Seller confidence also improved slightly, with 65% of sellers in the UK confident they'd sell their property within the next three months in May, compared with 64% in April. Some areas demonstrated even more positivity, with 72% of Scottish sellers confident they'd sell within the next three months, up from 66% in April. 42% of properties were SSTC within 30 days of first being listed for sale in May, fairly consistent with April's 43%, while 6% of buyers in need of a mortgage were either very worried or slightly concerned about mortgage availability in May compared with 7% in April.

42% of properties were Sold		Sellers must price
Subject to Contract (SSTC)		sensitively if they are
within 30 days of first being		pricing to sell
advertised for sale, compared
with 61% in May 2022

It's no real surprise that buyer confidence is strong given that prices are softening in some areas. There's more choice of stock than has been the case for a while and if you can afford to buy, now is a great time to make a move. Although some buyers will inevitably be worried about higher mortgage rates, there seems to be a growing realisation of the need to adapt to a new, elevated level of pricing, in place of the unsustainable rock- bottom rates of the past.

We wait to see how recent volatility pans out but what it does provide is a sense check. There are people who need or want to move, but buyers also believe prices are inflated. With offers regularly being made below asking price, pricing correctly in the first instance is crucial. Sellers and their agents should be having conversations, not just about pricing but about timing. If you want to move by a certain date, ask your agent about various pricing structures and how being sensitive on price can speed up the time it takes to find a buyer. When the market is in flux, pricing competitively means pricing ultra-realistically.

The fallout from the latest inflation figures may be felt more keenly in June's data, with the impact of higher mortgage rates and potential for further base rate rises unsettling buyers and sellers alike. It looks as though the next three months might well be tougher than originally thought and there may be a negative knock-on impact on transaction levels. However, there is no reason why sellers who take advice from an experienced local agent, and price realistically under their guidance cannot still achieve a timely sale.

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 May 2023?

May 2023 Headlines

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

• 65% of sellers were confident that they would sell their property within the next 3 months, a slight increase when compared to April 2023 (64%)
• 26% of sellers were confident that they would sell their properties within the next 6 months, unchanged when compared to April 2023 (26%)
• 4% of sellers were confident that they would sell their properties within the next 9 months, unchanged when compared to April 2023 (4%)
• 5% of sellers were confident that they would sell their home within the next 12 months, a slight decrease when compared to April 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

	May 23	Apr 23
Within next 3 months	72%	66%
Within next 6 months	20%	23%
Within next 9 months	2%	4%
Within next 12 months	6%	7%

North
West	May 23	Apr 23
	Within next 3 months	67%	68%
	Within next 6 months	24%	22%
	Within next 9 months	4%	4%
	Within next 12 months	5%	6%
West
Midlands	May 23	Apr 23
	Within next 3 months	65%	65%
	Within next 6 months	27%	27%
	Within next 9 months	4%	3%
	Within next 12 months	4%	5%
Wales	May 23	Apr 23
	Within next 3 months	66%	64%
	Within next 6 months	24%	25%
	Within next 9 months	3%	4%
	Within next 12 months	7%	7%
South
West	May 23	Apr 23
	Within next 3 months	63%	59%
	Within next 6 months	28%	30%
	Within next 9 months	4%	4%
	Within next 12 months	5%	7%
South
East	May 23	Apr 23
	Within next 3 months	64%	66%
	Within next 6 months	28%	25%
	Within next 9 months	3%	4%
	Within next 12 months	5%	5%

		North
		East	May 23	Apr 23
		Within next 3 months	63%	59%
		Within next 6 months	28%	30%
		Within next 9 months	4%	5%
		Within next 12 months	5%	6%
		Yorkshire
		& The Humber	May 23	Apr 23
		Within next 3 months	62%	66%
		Within next 6 months	28%	26%
		Within next 9 months	3%	4%
		Within next 12 months	7%	4%
		East
		Midlands	May 23	Apr 23
		Within next 3 months	65%	62%
		Within next 6 months	23%	27%
		Within next 9 months	5%	6%
		Within next 12 months	7%	5%
		East Of
		England	May 23	Apr 23
		Within next 3 months	64%	58%
		Within next 6 months	26%	31%
		Within next 9 months	6%	5%
		Within next 12 months	4%	6%

		Greater
		London	May 23	Apr 23
		Within next 3 months	67%	65%
		Within next 6 months	26%	27%
		Within next 9 months	3%	4%
		Within next 12 months	4%	4%

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 May 2023?

May 2023 Headlines

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

• 73% of buyers were confident that they would purchase a property within the next 3 months, a slight increase when compared to April 2023 (70%)
• 19% of buyers were confident that they would purchase a property within the next 6 months, a slight decrease when compared to April 2023 (21%)
• 3% of buyers were confident that they would purchase a property within the next 9 months, unchanged when compared to April 2023 (3%)
• 5% of buyers were confident that they would purchase a property within the next 12 months, a slight decrease when compared to April 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

	May 23	Apr 23
Within next 3 months	78%	75%
Within next 6 months	14%	16%
Within next 9 months	2%	3%
Within next 12 months	6%	6%

North
West	May 23	Apr 23
	Within next 3 months	76%	74%
	Within next 6 months	17%	18%
	Within next 9 months	3%	3%
	Within next 12 months	4%	5%
West
Midlands	May 23	Apr 23
	Within next 3 months	73%	72%
	Within next 6 months	20%	20%
	Within next 9 months	3%	3%
	Within next 12 months	4%	5%
Wales	May 23	Apr 23
	Within next 3 months	71%	68%
	Within next 6 months	21%	22%
	Within next 9 months	2%	3%
	Within next 12 months	6%	7%
South
West	May 23	Apr 23
	Within next 3 months	68%	64%
	Within next 6 months	23%	25%
	Within next 9 months	3%	4%
	Within next 12 months	6%	7%
South
East	May 23	Apr 23
	Within next 3 months	70%	68%
	Within next 6 months	22%	22%
	Within next 9 months	3%	4%
	Within next 12 months	5%	6%

		North
		East	May 23	Apr 23
		Within next 3 months	73%	70%
		Within next 6 months	19%	22%
		Within next 9 months	3%	3%
		Within next 12 months	5%	5%
		Yorkshire
		& The Humber	May 23	Apr 23
		Within next 3 months	74%	71%
		Within next 6 months	18%	19%
		Within next 9 months	3%	4%
		Within next 12 months	5%	6%
		East
		Midlands	May 23	Apr 23
		Within next 3 months	72%	67%
		Within next 6 months	19%	21%
		Within next 9 months	3%	5%
		Within next 12 months	6%	7%
		East Of
		England	May 23	Apr 23
		Within next 3 months	69%	67%
		Within next 6 months	21%	22%
		Within next 9 months	4%	4%
		Within next 12 months	6%	7%

		Greater
		London	May 23	Apr 23
		Within next 3 months	75%	71%
		Within next 6 months	18%	21%
		Within next 9 months	2%	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

Mover attitudes towards mortgage availability in May 2023

May 2023 headlines:

• As a UK average, in May 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, a slight decrease when compared to April 2023 (7%)
• The West Midlands had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (27%). The South West had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (18%)
• 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 (33%)
• 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%). 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

	May 23	Apr 23	May 23	Apr 23	May 23	Apr 23	May 23	Apr 23	May 23	Apr 23	May 23	Apr 23
UK average	2%	2%	4%	5%	10%	9%	23%	23%	33%	33%	28%	28%
Greater London	3%	2%	4%	8%	12%	10%	26%	25%	22%	20%	33%	35%
South East	1%	1%	6%	4%	8%	9%	23%	23%	35%	35%	27%	28%
South West	2%	1%	4%	4%	8%	8%	18%	17%	45%	44%	23%	26%
East of England	2%	2%	5%	5%	9%	8%	21%	19%	35%	36%	28%	30%
West Midlands	2%	2%	5%	4%	9%	9%	27%	25%	29%	30%	28%	30%
East Midlands	2%	3%	4%	6%	9%	9%	21%	19%	33%	35%	31%	28%
Yorkshire &	2%	2%	5%	4%	12%	12%	22%	23%	31%	34%	28%	25%
The Humberside
North East	1%	1%	4%	4%	13%	9%	23%	19%	33%	40%	26%	27%
North West	2%	2%	4%	5%	12%	11%	26%	27%	30%	30%	26%	25%
Wales	1%	1%	3%	3%	7%	6%	24%	25%	42%	42%	23%	23%
Scotland	3%	1%	3%	2%	9%	9%	19%	23%	40%	41%	26%	24%

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 May 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

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

May

Apr

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

May 23

April 23

1

2

3

Key

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

Average asking prices - May 2023

UK Average (excl. Greater London)

Type	May 23	April 23	May 22
Detached	£581,592	£572,583	£602,988
Semi-Detached	£363,177	£357,913	£360,696
Terraced	£281,201	£278,736	£276,281
Flat	£237,545	£236,991	£236,392
Average	£414,580	£406,067	£402,271

Greater London

Type	May 23	April 23	May 22
Detached	£1,912,769	£1,877,624	£2,120,305
Semi-Detached	£1,185,900	£1,163,934	£1,278,494
Terraced	£1,273,020	£1,268,206	£1,346,938
Flat	£881,144	£885,979	£930,626
Average	£1,038,933	£1,034,081	£1,076,160

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