The latest quarterly Opinion Poll conducted by Dataloft by PriceHubble offers insightful glimpses into the current sentiment in the UK housing market, as experienced by estate agents across the country. With inflation falling to just 2.3% and a widely anticipated cut in the base rate, there is a notable uptick in buyer confidence.
Growing Optimism Among Buyers
According to the poll, 64% of estate agents have observed a significant or slight improvement in buyer confidence compared to three months ago. This resurgence in optimism can be attributed to the favourable economic indicators, particularly the dip in inflation and the expected reduction in interest rates. Such conditions make property investments more appealing, encouraging prospective buyers to take action.
Increase in Sales Listings
Almost half of the surveyed agents report an increase in sales listings, a trend that signals more sellers are returning to the market. This influx has pushed the number of homes for sale to its highest level in eight years. The heightened activity among sellers suggests a revitalized housing market where supply is beginning to catch up with demand.
Consistent Rate of Withdrawals
Despite the encouraging signs of improved confidence and increased listings, the rate of withdrawals from the market has remained steady over the past three months. This stability indicates that while more buyers and sellers are engaging in the market, some underlying factors are maintaining a consistent withdrawal rate. It could reflect ongoing uncertainties or a cautious approach among some participants.
Rental Market Dynamics
As the rental market enters its typically busier summer season, estate agents are noting changes in stock levels. With properties being snapped up more quickly during this period, 41% of agents report lower stock levels. This seasonal trend underscores the high demand for rental properties during the summer months, when more tenants are actively seeking new homes.
Reasons for optimism
The findings from the Dataloft by PriceHubble poll illustrate a cautiously optimistic outlook for the UK housing market. Improved buyer confidence, an increase in sales listings, and the usual summer surge in the rental market suggest a dynamic environment. However, the consistent rate of withdrawals indicates that some market participants are still proceeding with caution. As economic conditions continue to evolve, the sentiment in the housing market will likely adjust accordingly, making these regular opinion polls a valuable tool for tracking trends and expectations.
Source: #Dataloft by PriceHubble (poll of subscribers) May 2024
