The majority of home buyers and sellers remain “undeterred in their efforts to tackle the housing market”, despite the turmoil of recent weeks.
That’s according to the latest property market sentiment analysis by London-based agency Benham and Reeves, which says many believe the recent turmoil has been greatly exaggerated.
The survey targeted those who were specifically entering the UK property market to buy or sell property. The sample of over 1,500 respondents further highlighted the persistent imbalance between market supply and demand, with 65% of respondents being buyers versus 35% being sellers.
Responding to the question of whether, in the last fortnight, they had changed their plans to buy or sell a home they had otherwise committed to, a resounding 84% said they did not There had been no change in their plans.
Meanwhile, only 16% had been swayed by news of turmoil in the mortgage market, with lenders at one point withdrawing 40% of mortgage products in anticipation of interest rates potentially hitting 6%.
Most, according to the survey, felt that the fear and caution of recent weeks had been overdone (42%). A fifth (20%) thought it had been greatly exaggerated, with 42% believing it had been somewhat exaggerated.
By contrast, only a quarter did not feel that the current pessimism surrounding the UK market had been overdone, with 13% simply not sure.
That said, although confidence remains relatively high, nearly half (45%) of respondents believe house prices will fall in 2023. Some 18% believe they will remain unchanged, while 22% believe that a new rise is in sight.
“A rather balanced approach from UK home buyers and sellers who understand that we simply cannot expect property prices to soar at double digit growth rates forever and , therefore, we are likely to see current warm market conditions cool down a bit this year,” said Marc von Grundherr, director of Benham and Reeves.
“However, at the same time, they simply do not buy into the broader pessimism that surrounds the market at the moment, having themselves seen the resilience of bricks and mortar in tough economic times, but also the speed with which which the market can rebound after a period of instability.
He added: “As a result, many are undeterred in their ambitions to buy or sell, and as they continue to do so, any fear of a property crash will be firmly dispelled.”