Buyers lack confidence in Government’s housing market policy
Summary
OnTheMarket’s latest Property Sentiment Index suggests that confidence in government housing policy is weak ahead of the Autumn Budget, with many movers and the wider public believing recent policy has harmed the property market. At the same time, expectations of higher borrowing costs have increased, although most active buyers still say they are confident they can fund a purchase.
Why it matters
Surveyors should note the shift in buyer sentiment and rate expectations, as these can influence transaction volumes, pricing behaviour and instructions. The article also highlights policy proposals that could affect demand, affordability and market activity if adopted in the Budget.
Key points
- Almost half of active movers say recent government policy has negatively affected the property market.
- 41% of active movers expect interest rates to rise over the next six months, up from 29% last quarter.
- 89% of active buyers remain confident they can raise funds for their next home.
- House price expectations have steadied, with 33% expecting prices to rise in the next year.
- OnTheMarket calls for wider mortgage reform, Stamp Duty cuts and changes to the Your First Home scheme.
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