OnTheMarket : Property Sentiment Index – January 2023

Property Sentiment Index

January 2023	Chief Executive Officer
	Jason Tebb
(reporting on December 2022 data)

Sentiment prevails as motivated buyers and sellers get on with moving

73% of active buyers		64% of sellers in the UK
in the UK were confident		were confident that they
that they would purchase a		would sell their property
property within the next 3		within the next 3 months
months

December tends to be an unusual month as far as the housing market is concerned. Those who need to move carry on regardless while those who aren't in such a hurry may delay until spring as they enjoy the festivities. Yet our data shows that confidence, challenged so significantly after the drama created by the ill-fatedmini-Budget, remarkably stabilised in December. There were concerns that transactions would grind to a halt in a high inflationary environment, yet while December is traditionally a quieter month, our data indicates that 60% of properties were SSTC within 30 days, demonstrating that motivated vendors who priced their homes accurately were still able to transact. This figure is a considerable improvement on 42% in November when the market was rocked by the mini-Budget fallout. This is also up on 53% the previous December, a time when the market was significantly more buoyant.

With 73% of buyers confident they'd purchase a property within the next three months, a slight decrease from 74% in November, and 64% of sellers confident they'd sell within the next three months, up from 63% the previous month, there is still plenty of positivity even as the inevitable rebalancing of the market continues. House price indices suggest that property values are nudging downwards but while there is plenty of speculation as to how far these may fall, agents are more concerned about transaction numbers.

60% of properties were		Experienced
Sold Subject to Contract (SSTC)		local agents crucial
within 30 days of first being		to pricing property
advertised for sale, compared		correctly
with 53% in December 2021

There are still deals to be done and evidence suggests that serious buyers and sellers continue to engage with each other despite macro-economic headwinds. Making sure properties are priced well by taking advice from an experienced local agent who knows the local area inside and out is going to be more important than ever as the market becomes more challenging against the backdrop of a higher cost of living and rising interest rates.

As fixed-rate mortgage pricing continues to edge downwards with several lenders reducing rates, this may help restore positivity in the market. Previous expectations of base rate peaking at 6 per cent or even higher are now looking wide of the mark and with the Prime Minister vowing to bring inflation under control, buyers may be more confident that the recent mortgage rate volatility is behind us.

It can be tempting to read too much into one set of data but if you thought nothing ever happens in December, this wasn't the case in 2022. It demonstrates yet again that there will always be those who need to move, but properties need to be priced effectively if there is to be a realistic market for those who are serious about buying and selling in 2023.

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 December 2022?

December 2022 Headlines

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

• 64% of sellers were confident that they would sell their property within the next 3 months, a slight increase when compared to November 2022 (63%)
• 26% of sellers were confident that they would sell their properties within the next 6 months, a slight decrease when compared to November 2022 (27%)
• 4% of sellers were confident that they would sell their home within the next 9 months, unchanged when compared to November 2022 (4%)
• 6% of sellers were confident that they would sell their home within the next 12 months, unchanged when compared to November 2022 (6%)

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

	Dec 22	Nov 22
Within next 3 months	62%	65%
Within next 6 months	25%	22%
Within next 9 months	3%	4%
Within next 12 months	10%	9%

North
West	Dec 22	Nov 22
	Within next 3 months	70%	69%
	Within next 6 months	19%	24%
	Within next 9 months	5%	4%
	Within next 12 months	6%	3%
West
Midlands	Dec 22	Nov 22
	Within next 3 months	65%	69%
	Within next 6 months	30%	23%
	Within next 9 months	1%	3%
	Within next 12 months	4%	5%
Wales	Dec 22	Nov 22
	Within next 3 months	63%	65%
	Within next 6 months	28%	26%
	Within next 9 months	3%	4%
	Within next 12 months	6%	5%
South
West	Dec 22	Nov 22
	Within next 3 months	52%	61%
	Within next 6 months	35%	30%
	Within next 9 months	6%	2%
	Within next 12 months	7%	7%
South
East	Dec 22	Nov 22
	Within next 3 months	66%	58%
	Within next 6 months	26%	30%
	Within next 9 months	3%	6%
	Within next 12 months	5%	6%

		North
		East	Dec 22	Nov 22
		Within next 3 months	59%	60%
		Within next 6 months	24%	30%
		Within next 9 months	9%	3%
		Within next 12 months	8%	7%
		Yorkshire
		& The Humber	Dec 22	Nov 22
		Within next 3 months	64%	64%
		Within next 6 months	26%	27%
		Within next 9 months	5%	3%
		Within next 12 months	5%	6%
		East
		Midlands	Dec 22	Nov 22
		Within next 3 months	58%	63%
		Within next 6 months	32%	26%
		Within next 9 months	5%	6%
		Within next 12 months	5%	5%
		East Of
		England	Dec 22	Nov 22
		Within next 3 months	61%	62%
		Within next 6 months	28%	28%
		Within next 9 months	3%	5%
		Within next 12 months	8%	5%

		Greater
		London	Dec 22	Nov 22
		Within next 3 months	82%	64%
		Within next 6 months	15%	24%
		Within next 9 months	0%	5%
		Within next 12 months	3%	7%

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 December 2022?

December 2022 Headlines

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

• 73% of buyers were confident that they would purchase a property within the next 3 months, a slight decrease when compared to November 2022 (74%)
• 17% of buyers were confident that they would purchase a property within the next 6 months, a slight increase when compared to November 2022 (16%)
• 4% of buyers were confident that they would purchase a property within the next 9 months, unchanged when compared to November 2022 (4%)
• 6% of buyers were confident that they would purchase a property within the next 12 months, unchanged when compared to November 2022 (6%)

• 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

	Dec 22	Nov 22
Within next 3 months	73%	74%
Within next 6 months	16%	15%
Within next 9 months	3%	3%
Within next 12 months	8%	8%

North
West	Dec 22	Nov 22
	Within next 3 months	75%	75%
	Within next 6 months	15%	14%
	Within next 9 months	5%	5%
	Within next 12 months	5%	6%
West
Midlands	Dec 22	Nov 22
	Within next 3 months	74%	78%
	Within next 6 months	17%	15%
	Within next 9 months	3%	3%
	Within next 12 months	6%	4%
Wales	Dec 22	Nov 22
	Within next 3 months	72%	72%
	Within next 6 months	19%	18%
	Within next 9 months	3%	4%
	Within next 12 months	6%	6%
South
West	Dec 22	Nov 22
	Within next 3 months	68%	67%
	Within next 6 months	20%	20%
	Within next 9 months	6%	6%
	Within next 12 months	6%	7%
South
East	Dec 22	Nov 22
	Within next 3 months	69%	73%
	Within next 6 months	20%	17%
	Within next 9 months	4%	4%
	Within next 12 months	7%	6%

		North
		East	Dec 22	Nov 22
		Within next 3 months	74%	73%
		Within next 6 months	16%	15%
		Within next 9 months	4%	4%
		Within next 12 months	6%	8%
		Yorkshire
		& The Humber	Dec 22	Nov 22
		Within next 3 months	72%	73%
		Within next 6 months	19%	16%
		Within next 9 months	3%	4%
		Within next 12 months	6%	7%
		East
		Midlands	Dec 22	Nov 22
		Within next 3 months	71%	73%
		Within next 6 months	18%	14%
		Within next 9 months	4%	6%
		Within next 12 months	7%	7%
		East Of
		England	Dec 22	Nov 22
		Within next 3 months	71%	72%
		Within next 6 months	18%	19%
		Within next 9 months	4%	3%
		Within next 12 months	7%	6%

		Greater
		London	Dec 22	Nov 22
		Within next 3 months	80%	80%
		Within next 6 months	12%	12%
		Within next 9 months	3%	3%
		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 December 2022

December 2022 headlines:

• As a UK average, in December 2022 only 6% of movers were concerned (either very worried or slightly concerned) about securing a mortgage to fund the purchase of their next property, a slight increase when compared to November 2022 (4%).
• The West Midlands had the highest number of respondents who already had their mortgage Agreement In Principle in place prior to starting their search for a property (21%). The North East had the lowest number of respondents who already had a mortgage Agreement In Principle in place before starting their property search (13%).
• As a UK average, 26% 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 (34%).
• As a UK average, 36% 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 (23%). Scotland had the highest number of respondents who indicated that they didn't need a mortgage to buy their next home (47%).

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

	Dec 22	Nov 22	Dec 22	Nov 22	Dec 22	Nov 22	Dec 22	Nov 22	Dec 22	Nov 22	Dec 22	Nov 22
UK average	2%	1%	4%	3%	14%	2%	18%	37%	36%	33%	26%	24%
Greater London	3%	1%	5%	3%	17%	2%	18%	45%	23%	19%	34%	30%
South East	2%	1%	5%	3%	14%	2%	18%	37%	34%	32%	27%	25%
South West	2%	1%	4%	2%	12%	2%	16%	31%	42%	43%	24%	21%
East of England	3%	1%	5%	3%	14%	2%	16%	37%	36%	31%	26%	26%
West Midlands	3%	1%	5%	2%	13%	2%	21%	40%	31%	28%	27%	27%
East Midlands	3%	1%	4%	4%	14%	2%	15%	38%	36%	31%	28%	24%
Yorkshire &	2%	1%	5%	3%	15%	2%	17%	38%	36%	33%	25%	23%
The Humberside
North East	2%	1%	2%	3%	15%	3%	13%	33%	39%	35%	29%	25%
North West	2%	1%	4%	2%	15%	2%	20%	45%	33%	28%	26%	22%
Wales	1%	0%	2%	1%	13%	2%	19%	36%	42%	43%	23%	18%
Scotland	1%	0%	3%	3%	10%	2%	17%	32%	47%	44%	22%	19%

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 December 2022

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

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

Dec

Nov

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

22

1

2

3

4

5

Top 3 Wish List searches UK average

December 22

November 22

1

2

3

Key

Garden	Parking	Garage
Large	Off-street	Rural
Garden	parking
Double	Character	With
Garage	Property	Land

Average asking prices - December 2022

UK Average (excl. Greater London)

Type	December 22	November 22	December 21
Detached	£571,115	£587,001	£560,001
Semi-Detached	£350,768	£354,058	£338,587
Terraced	£267,581	£271,862	£253,657
Flat	£248,695	£250,005	£228,153
Average	£396,916	£404,594	£364,089

Greater London

Type	December 22	November 22	December 21
Detached	£1,970,483	£1,928,525	£2,107,238
Semi-Detached	£1,192,443	£1,247,244	£1,374,787
Terraced	£1,316,134	£1,295,432	£1,362,377
Flat	£903,999	£897,942	£893,222
Average	£1,050,568	£1,051,753	£1,039,654

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