Buyer and seller confidence in the housing market remained high in May, despite considerable headwinds including soaring inflation and another interest rate hike by the Bank of England, according to OnTheMarket (OTM).

Against this backdrop, the property website says that that there is evidence emerging of a rise in the number of new instructions, suggesting the start of an inevitable rebalancing of supply and demand in the market.

But this process will take time, and until then, the ‘new normal’, an elevated version of the pre-pandemic market continues, although regional differences in sentiment show that ‘one size does not fit all’.

Data from OTM shows that sentiment remained positive in May with 82% of sellers confident that they could complete a sale within three months – the same percentage as in April, March and February 2022.

The study also found that serious buyers are determined to proceed, keen to take advantage of low mortgage rates while they can; in May, 75% were confident they would purchase within the next 3 months, only slightly down on 76% in April.

Meanwhile, 61% of properties in the UK were SSTC within 30 days of first being advertised for sale in May, down slightly from 63% in April.

Jason Tebb, chief executive officer, OTM, said: “As we gradually move towards a more rebalanced market in terms of supply and demand, agents’ expertise and experience will be needed to hold complex chains together and maintain buyer and seller motivations throughout the coming months.

“The value of a good agent shouldn’t be underestimated and while sentiment remains undented for now, those who are the most prepared for their pending transaction will have the advantage.