Portal boss: Property market remains active for ‘realistic’ sellers

The property market is still active for ‘realistic’ sellers and serious buyers, OnTheMarket (OTM’s) claims.

Jason Tebb, chief executive of the portal, said there were signs of confidence returning to the market in December despite concerns about the cost of living crisis.

It comes as OTM’s Property Sentiment Index for December showed 60% of properties were listed on the portal as sold subject to contract (SSTC) within 30 days, up from 53% a year before and 42% in November 2022.

Three quarters of active buyers in the UK were confident that they would purchase a property within the next three months and 64% of homeowners were confident that they would sell their property over the same period, which is around the same level as in recent months.

Tebb said: “House price indices suggest that property values are nudging downwards but while there is plenty of speculation as to how far these may fall, agents are more concerned about transaction numbers. 

“There are still deals to be done and evidence suggests that serious buyers and sellers continue to engage with each other despite macro-economic headwinds. 

“Making sure properties are priced well by taking advice from an experienced local agent who knows the local area inside and out is going to be more important than ever as the market becomes more challenging against the backdrop of a higher cost of living and rising interest rates.”

As fixed-rate mortgage pricing continues to edge downwards with several lenders reducing rates, this may help restore positivity in the market, Tebb suggested.

He added: “Previous expectations of base rate peaking at 6% or even higher are now looking wide of the mark and with the Prime Minister vowing to bring inflation under control, buyers may be more confident that the recent mortgage rate volatility is behind us. 

“It can be tempting to read too much into one set of data but if you thought nothing ever happens in December, this wasn’t the case in 2022. It demonstrates yet again that there will always be those who need to move, but properties need to be priced effectively if there is to be a realistic market for those who are serious about buying and selling in 2023.”