The rebalancing of the housing market continued in September, with sentiment among home movers remaining relatively strong despite the economic turmoil and ongoing cost-of-living challenges people are currently facing, new data shows.

Some 75% of active UK buyers in September remained confident that they would buy a property within three months, up from 73% in August, according to the latest OnTheMarket (OTM) Property Sentiment Index.

The figures also reveal that 79% of sellers in the UK were confident that they would sell their property within the next three months – the same level as in August.

While OTM’s data reflects what happened in September, the property portal’s CEO, Jason Tebb, accepts that it is “slightly historic” given the mini-Budget came towards the end of it.

He commented: “Any effects subsequent market turmoil may have had are yet to be fully reflected in the figures However, what the numbers do show is that positive buyer and seller sentiment continued largely unabated in September.

“This is all the more remarkable given the considerable headwinds of rising food and energy bills, as well as interest rates. There’s also evidence that buyers feel the market is moving in their favour, with 75% of active UK buyers in September remaining confident that they’d purchase a property within the next three months, up from 73% in August.”

OTM report that stock levels are currently at their highest since March 2021, leading to a levelling off in pricing, which, according to Tebb, “will be welcomed by first-time buyers in particular who may be worried about being priced out of the market”.

At the same time as buyers having more choice, mortgage rates are rising along with the cost of living, which will prey on minds when making offers.

Tebb continued: “Even with the recent stamp duty reductions, buyers have less buying power so sellers would be wise to take advice from an experienced local agent who can give an achievable valuation.

“New properties coming to market which are not priced realistically are likely to struggle to sell and stick on the market. It’s likely that buyers who have already secured a mortgage offer will remain committed.”

As buyers watch mortgage rates climb, their offer will appear increasingly competitive, making them even more determined to take advantage of it, according to Tebb.

He said: “A decision to buy is usually based on their own affordability and barring any changes to that, they’ll likely be keen to progress. The alternative is to let the mortgage offer lapse, which buyers may come to regret.

“Our data shows that 31% of buyers already had a mortgage agreement in principle in place in September, while 37% said they didn’t need a mortgage.

“The 26% who hadn’t thought about it yet might want to take action sooner rather than later as mortgage rates continue to climb.”

Despite rising inflation, OTM reports that the UK housing market has still seen good transactional numbers over the past six months, with more than half – 53% – of properties selling (subject to contract) within 30 days of first being listed in September.

Tebb added: “Ultimately, those serious about moving and who need to move, will continue to do so. People move for a variety of reasons – family, job, marriage, divorce, death, debt – which is why there’s always a certain level of transactions, even in more challenging markets which we’ve seen evidence of historically when faced with tough conditions.

“Most recently, rather than the pandemic turning the UK property market into the disaster that some predicted, it showed remarkable resilience with strong growth. Despite everything, there is an underlying positivity and the aspiration to buy property remains.”

The expectation that property prices could soften has led to an increase in buyer demand across some parts of the country, incluidng London, in recent weeks.

Reflecting on the latest data from OTM, Matthew Thompson, head of sales at Chestertons in London, said: “The expectation that London’s property prices could see an adjustment has led to an uplift in buyer demand across the capital last month. Compared to August, there were 17% more buyer enquiries in September and 18% more viewings.

“We are also encountering an increasing number of house hunters who want to secure a property as soon as possible and take out a fixed rate mortgage. This has contributed to September’s property market remaining busy and competitive. As the cost-of-living crisis is looming, some buyers are compromising on their priorities in order to secure a property under their initial budget.”

The latest Property Sentiment Index by OTM can be viewed by clicking here.