The latest OnTheMarket Property Sentiment Index, which reflects on property market activity in July, has been released. It shows that housing stock is at the highest level in a year as seasonally-driven housing market returns.
It also reveals that there is no clear sign of political and economic uncertainty unsettling buyers or sellers.
Some 75% of active buyers in the UK were confident that they would purchase a property within the next three months, while 80% of sellers in the UK were confident that they would sell their property within the same time period.
The report also reveals that 57% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 56% in July 2021.
OnTheMarket said it was starting to see evidence of a return to a seasonally-driven housing market with a quieter summer following a busy spring, and the expectation of a pick-up in activity in the autumn once the children go back to school and buyers attempt to complete before Christmas.
This is further indication of a more normalised market; a far cry from the frenzy which began in the early stages of the Covid pandemic where it was frantically busy all year round as buyers competed for limited stock. In July, the ‘new normal’, an elevated version of the pre-pandemic market, continued to grip the UK property market.
OTM pointed out that stock levels have been increasing since February, with a consistent week-on-week increase in the volume of properties available.
Stock levels hit the highest level of available stock in July compared with any time during the previous 12 months.
With seasonal effects coming into play this summer, there may be fewer active buyers as people are more inclined to take a holiday than has been the case over the past two years. With buyers potentially spending time away from their housing market searches, this may have the knock-on effect of stock levels continuing to improve.
Despite the rising cost of living, our data shows that sentiment was largely unchanged in July. Serious buyers remained committed to buying property, while seller confidence remains high.
Buy as there is now more stock available on the market for buyers to choose from, some vendors may be less confident of their homes selling as quickly as they might’ve done previously.
Nevertheless, the slight uptick in the percentage of properties under offer, there is yet more evidence of the wave of positivity and optimism that continues to buoy the market.
OTM’s CEO, Jason Tebb, said: “With sellers remaining confident despite summer holidays and political upheaval, and buyers keen to secure mortgage rates before they edge out of reach, all signs point to a housing market that is ticking along, albeit with the return of seasonal norms.”