The majority of homebuyers and sellers remain ‘undeterred from their endeavours to tackle the housing market’, despite the turbulence of the last few weeks.
That’s according to the latest analysis of property market sentiment by London agency Benham and Reeves, which says many believe the recent turbulence has been greatly exaggerated.
The survey targeted those who were specifically in the process of entering the UK property market to either buy or sell a property. The sample of more than 1,500 respondents further highlighted the continued imbalance of market supply and demand, with 65% of those answering being buyers against 35% who were selling.
Responding to the question of whether, in the past fortnight, they had changed their plans to buy or sell a home that they were otherwise committed to, a resounding 84% said there had been no change in their plans.
Meanwhile, only 16% had been swayed by the news of turbulence within the mortgage market, with lenders at one point pulling 40% of mortgage products in anticipation of interest rates potentially hitting 6%.
Most, according to the survey, believed that the fear and caution of the last few weeks had been exaggerated (42%). A fifth (20%) believed it had been greatly exaggerated, with 42% believing it had been somewhat exaggerated.
By contrast, only a quarter didn’t feel that the current doom and gloom surrounding the UK market had been exaggerated, with 13% simply unsure.
That said, although confidence remains relatively high, nearly half (45%) of those surveyed do believe that house prices will cool in 2023. Some 18% think they will remain unchanged, while 22% believe a further boost is on the cards.
“A rather level-headed approach by the UK’s homebuyers and sellers who appreciate that we simply can’t expect house prices to soar by double-digit rates of growth forever and therefore we are likely to see current hot market conditions cool a tad come next year,” Marc von Grundherr, director of Benham and Reeves, said.
“However, at the same time, they simply aren’t buying into the wider doom and gloom surrounding the market at present, having seen themselves the resilience of bricks and mortar in tough economic times, but also how quickly the market can bounce back following a period of instability.”
He added: “As a result, many remain undeterred in their ambitions to either buy or sell and as they continue to do so, any fears of a property market crash will be firmly laid to rest.”