OnTheMarket : Property Sentiment Index – September 2023

Property Sentiment Index

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

Amplified seasonality sees fewer casual browsers, but serious buyers and sellers continue to be active

75% of active buyers in		61% 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

For the first August in a couple of years, traditional seasonality returned to the housing market. It felt quieter, as families took advantage of the school holidays and got away, rather than bought or sold houses. The backdrop of economic uncertainty, fuelled by numerous consecutive interest rate rises, the high cost of living and concerns over the Bank of England's ability to rein in stubborn inflation, have amplified seasonal effects. As a consequence, August, a traditionally quiet month for the market, has felt even more so.

Despite everything, buyers are proving to be resilient, with three-quarters confident that they'd purchase a property within the next three months in August compared to 76% in July. Those property seekers who are out there are serious; transaction numbers may be down month on month but motivated buyers and sellers are proceeding, with over a third (38%) of properties Sold Subject To Contract within 30 days of first being listed for sale in August.

It is unsurprising that this is down from 54% last August when the market was much busier, with significantly less property stock and abnormally high levels of demand, unusual for the height of summer and reflecting a very different market.

Seller sentiment was not as strong as buyer confidence in August, reflecting the shift in power toward the latter, but even so, 61% of UK sellers were confident that they'd sell within the next three months in August compared to 63% in July. There are regional variations, with confidence decreasing in the North West and South East to 65% and 55% respectively in August,

38% of properties were Sold		Buyers hyper-
Subject to Contract (SSTC)		sensitive on price, so
within 30 days of first being		sellers would be wise
advertised for sale, compared		to take advice from an
with 54% in August 2022		experienced local agent

compared to 72% and 62% in July, while rising in the East Midlands to 65% in August from 57% in July. This divergence may reflect the fact that sellers are usually hyper-sensitive to activity in their local market as this information is easy to come by, noticing how long properties take to sell and for how much.

Challenging markets tend to shake out those who aren't serious about moving as it's more unlikely people will wish to view properties speculatively. In trickier conditions, it can be tempting to adopt a 'wait and see' approach until inflation is under control or mortgages are cheaper if there is no strong motivation to move.

Those who remain tend to be serious buyers who have to purchase or are keen to but are hyper-sensitive to pricing: if they don't think it's sensible, they may not even commit to a viewing. Sellers should not be disheartened, as while buyers may be fewer in number, our data suggests that they are highly motivated. There is no reason why those sellers who take advice from a local agent and price sensitively can't successfully transact.

While another rate rise can't be ruled out, on the positive side, this has largely been priced in by lenders with a number reducing their mortgage rates recently.

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 August 2023?

August 2023 Headlines

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

• 61% of sellers were confident that they would sell their property within the next 3 months, a slight decrease when compared to July 2023 (63%)
• 27% of sellers were confident that they would sell their properties within the next 6 months, a slight decrease when compared to July 2023 (28%)
• 5% of sellers were confident that they would sell their properties within the next 9 months, a slight increase when compared to July 2023 (4%)
• 7% of sellers were confident that they would sell their home within the next 12 months, a slight increase when compared to July 2023 (5%)

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

	Aug 23	Jul 23
Within next 3 months	67%	72%
Within next 6 months	21%	18%
Within next 9 months	4%	4%
Within next 12 months	8%	6%

North
West	Aug 23	Jul 23
	Within next 3 months	65%	72%
	Within next 6 months	26%	20%
	Within next 9 months	4%	3%
	Within next 12 months	5%	5%
West
Midlands	Aug 23	Jul 23
	Within next 3 months	65%	64%
	Within next 6 months	25%	29%
	Within next 9 months	4%	3%
	Within next 12 months	6%	4%
Wales	Aug 23	Jul 23
	Within next 3 months	65%	61%
	Within next 6 months	22%	29%
	Within next 9 months	4%	5%
	Within next 12 months	9%	5%
South
West	Aug 23	Jul 23
	Within next 3 months	51%	55%
	Within next 6 months	38%	35%
	Within next 9 months	5%	5%
	Within next 12 months	6%	5%
South
East	Aug 23	Jul 23
	Within next 3 months	55%	62%
	Within next 6 months	31%	29%
	Within next 9 months	5%	4%
	Within next 12 months	9%	5%

		North
		East	Aug 23	Jul 23
		Within next 3 months	67%	66%
		Within next 6 months	22%	26%
		Within next 9 months	5%	3%
		Within next 12 months	6%	5%
		Yorkshire
		& The Humber	Aug 23	Jul 23
		Within next 3 months	64%	64%
		Within next 6 months	26%	21%
		Within next 9 months	4%	5%
		Within next 12 months	6%	10%
		East
		Midlands	Aug 23	Jul 23
		Within next 3 months	65%	57%
		Within next 6 months	23%	31%
		Within next 9 months	4%	5%
		Within next 12 months	8%	7%
		East Of
		England	Aug 23	Jul 23
		Within next 3 months	57%	60%
		Within next 6 months	33%	31%
		Within next 9 months	5%	4%
		Within next 12 months	5%	5%

		Greater
		London	Aug 23	Jul 23
		Within next 3 months	62%	66%
		Within next 6 months	25%	28%
		Within next 9 months	7%	4%
		Within next 12 months	6%	2%

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 August 2023?

August 2023 Headlines

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

• 75% of buyers were confident that they would purchase a property within the next 3 months, a slight decrease when compared to July 2023 (76%)
• 16% of buyers were confident that they would purchase a property within the next 6 months, unchanged when compared to July 2023 (16%)
• 3% of buyers were confident that they would purchase a property within the next 9 months, unchanged when compared to July 2023 (3%)
• 6% of buyers were confident that they would purchase a property within the next 12 months, a slight increase when compared to July 2023 (5%)

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

	Aug 23	Jul 23
Within next 3 months	78%	81%
Within next 6 months	13%	12%
Within next 9 months	2%	2%
Within next 12 months	7%	5%

North
West	Aug 23	Jul 23
	Within next 3 months	78%	79%
	Within next 6 months	14%	14%
	Within next 9 months	3%	2%
	Within next 12 months	5%	5%
West
Midlands	Aug 23	Jul 23
	Within next 3 months	76%	75%
	Within next 6 months	16%	18%
	Within next 9 months	3%	3%
	Within next 12 months	5%	4%
Wales	Aug 23	Jul 23
	Within next 3 months	72%	72%
	Within next 6 months	18%	19%
	Within next 9 months	3%	3%
	Within next 12 months	7%	6%
South
West	Aug 23	Jul 23
	Within next 3 months	68%	70%
	Within next 6 months	22%	20%
	Within next 9 months	3%	3%
	Within next 12 months	7%	7%
South
East	Aug 23	Jul 23
	Within next 3 months	69%	71%
	Within next 6 months	21%	20%
	Within next 9 months	3%	3%
	Within next 12 months	7%	6%

		North
		East	Aug 23	Jul 23
		Within next 3 months	76%	75%
		Within next 6 months	16%	17%
		Within next 9 months	3%	3%
		Within next 12 months	5%	5%
		Yorkshire
		& The Humber	Aug 23	Jul 23
		Within next 3 months	76%	77%
		Within next 6 months	16%	14%
		Within next 9 months	2%	3%
		Within next 12 months	6%	6%
		East
		Midlands	Aug 23	Jul 23
		Within next 3 months	76%	74%
		Within next 6 months	15%	17%
		Within next 9 months	3%	4%
		Within next 12 months	6%	5%
		East Of
		England	Aug 23	Jul 23
		Within next 3 months	71%	73%
		Within next 6 months	19%	18%
		Within next 9 months	3%	3%
		Within next 12 months	7%	6%

		Greater
		London	Aug 23	Jul 23
		Within next 3 months	80%	81%
		Within next 6 months	13%	12%
		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 August 2023

August 2023 headlines:

• As a UK average, in August 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 July 2023 (6%)
• The North West and Wales 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 (23%). 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, 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 (44%)

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

	Aug 23	Jul 23	Aug 23	Jul 23	Aug 23	Jul 23	Aug 23	Jul 23	Aug 23	Jul 23	Aug 23	Jul 23
Grand Total	2%	2%	4%	4%	13%	12%	20%	20%	33%	35%	28%	27%
London	3%	3%	5%	5%	15%	17%	22%	22%	22%	22%	33%	31%
South East	2%	2%	5%	5%	10%	10%	19%	21%	35%	34%	29%	28%
South West	2%	2%	3%	2%	11%	11%	15%	15%	44%	45%	25%	25%
East of England	2%	2%	5%	4%	11%	10%	17%	17%	35%	37%	30%	30%
West Midlands	2%	2%	3%	5%	12%	11%	21%	22%	31%	29%	31%	31%
East Midlands	3%	2%	6%	5%	13%	15%	20%	20%	32%	31%	26%	27%
Yorkshire and	2%	2%	4%	4%	17%	14%	20%	21%	31%	32%	26%	27%
The Humber
North East	1%	2%	3%	3%	15%	12%	18%	20%	36%	36%	27%	27%
North West	2%	2%	4%	4%	14%	16%	23%	22%	30%	30%	27%	26%
Wales	1%	2%	3%	3%	8%	10%	23%	20%	41%	43%	24%	22%
Scotland	1%	3%	3%	3%	11%	10%	17%	18%	43%	41%	25%	25%

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 August 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

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

Aug

Jul

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

August 23

July 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 - August 2023

UK Average (excl. Greater London)

Greater London

Type	Aug 23	Jul 23	Aug 22
Detached	£581,029	£591,768	£601,891
Semi-detached	£357,871	£363,344	£360,043
Terraced	£276,234	£279,998	£273,513
Flat/maisonette	£234,586	£236,830	£238,095
Grand Total	£411,885	£418,442	£407,124

Type	Aug 23	Jul 23	Aug 22
Detached	£1,891,741	£1,987,180	£1,987,289
Semi-detached	£1,121,440	£1,154,403	£1,250,223
Terraced	£1,163,531	£1,244,187	£1,315,396
Flat/maisonette	£869,269	£870,198	£907,068
Grand Total	£1,003,990	£1,028,204	£1,044,939

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