Autumn Budget has ‘dented buyer confidence’
Research by OnTheMarket shows homebuyers are now more concerned about how they will afford to buy a property.
Twice as many movers now doubt they can fund their next home following the Autumn Budget, research shows.
A survey by OnTheMarket found that 42% of buyers are now not confident they can afford to purchase their next home, up from 19% before the Budget, while two-thirds now expect rents to rise.
Meanwhile, the share of those confident has fallen from 65% to just over half, at 51%, despite it having held steady since May.
The Budget has knocked the wind out of home movers.”
The decline in confidence is accompanied by a shift in expectations around both interest rates and house prices.
More than half, at 57%, of those surveyed now expect interest rates to rise over the next six months, up from 41% in September, and an increased 29% are now expecting house prices to fall, up from 20% in September. Just 36% are expecting them to rise.
In the rental market, two-thirds expect rents to rise over the next year, up from 55%.
Bad Budget
Movers have taken a dim view of the Budget as a whole, with 48% expecting its policies to hurt the property market compared with 27% that expect them to help. Individual housing measures fare better, with 65% positive about the First Time Buyer ISA and 61% about the Your First Home scheme.
Still, three-quarters, at 74%, say the Government is not doing enough to help the property market, and two-thirds, at 67%, say the same about helping young people buy their first home.
Despite this, 55 of respondents said the Budget has not changed their property plans.
Jason Tebb (pictured), President of OnTheMarket, says: “The Budget has knocked the wind out of home movers. Before the Chancellor stood up, buyers were shrugging off frustration with policy and the prospect of higher borrowing costs. Now the number who doubt they can fund their next move has more than doubled, while more than half expect rates to rise.
“There is plenty in the detail that movers like. The First Time Buyer ISA and Your First Home are both well received, which shows people respond to targeted help. But taken as a whole, the package hasn’t given them reason to feel more secure.
“Opening Your First Home up to existing homes, alongside stamp duty reform, would give far more buyers a reason to move. Renters, meanwhile, are bracing for higher costs, and with landlords facing a higher tax bill on their rental income, there’s a real risk that gets passed on.”
