OTM’s upbeat property report suggests return to ‘normality’ – really?
OnTheMarket's Jason Tebb says the frenzy is over and the market is returning to normal as prices flatten out and buyer confidence soars. Well, last month anyway...
OnTheMarket’s Property Sentiment Index says stock is at its highest level in a year, with no sign of the looming political upheaval and economic crisis upsetting buyer or seller confidence. That was in July, of course. What a difference a month makes…
Surprisingly, according to the OTM index, three-quarters of active buyers were confident of success within 3 months – suggesting no issue with actual supply and little appreciation of the snail’s-pace conveyancing process ahead.
Not surprisingly 80% of sellers expected to sell within 3 months, a figure few agents would take issue with given the levels of demand across the country; given the bottleneck in conveyancing however, this expectation may also be met with disappointment.
We’re starting to see evidence of a return to a seasonally-driven housing market.”
OTM’s Average Asking Prices survey showed, finally, prices flattening across the country. Jason Tebb, CEO of OTM comments, “We’re 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.”
OTM’s findings suggest during July, confidence among buyers was high.
Looming economic crisis
Now we are well into August, all the talk and blaring headlines are of an emerging energy crisis for the UK with a direct and significant impact on almost all households’ finances.
This comes on the back of a 0.5% increase in the bank rate, announced of 4th August, with burgeoning inflation – some forecasting as high as 15% by 2023 – inevitably driving it further upwards.
It’s not unreasonable to suggest that national sentiment, or appreciation of direct economic pressures, have changed in a few short weeks, making the OTM Property Sentiment Index out of date as soon as it’s published.
