OTM Property Sentiment Index: Regional differences emerge

Regional differences are emerging when it comes to homebuyer and seller sentiment, research suggests.

OnTheMarket’s latest Property Sentiment Index showed 72% of buyers were confident that they’d purchase a property within the next three months compared with 74% in September. 

Meanwhile, seller confidence also dipped slightly, with 58% of UK sellers confident that they’d sell within the next three months in October compared with 61% a month before.

Differences emerge on a regional basis though.

For example, in the North East there was a 9 percentage point decrease in buyer confidence in October with 69% of buyers confident that they’d purchase a property within the next three months compared with 78% in September.

The drop was more gentle in the East Midlands with a 5 percentage-point decrease in buyer confidence.

Similarly, seller confidence was hit hard in certain regions with a 13 percentage-point drop in seller confidence in the East Midlands in October at 50% compared with 63% in September, and a 6 percentage-point drop in the North East.

The ratio of homes reaching Sold Subject to Contract is also down compared with October 2022 at 36% compared with 60%.

Meanwhile, the proportion of listings taking more than 150 days to reach this stage has risen from 8% to 22% over the same period.

Jason Tebb, chief executive of OnTheMarket, said: “Despite softer sentiment and confidence in some areas, the overriding sense is that people are breathing a sigh of relief. 

“The pause in rate rises enables consumers to reassess where they stand, giving them the confidence to get out there with the intention of buying or putting property on the market to sell.

“The improving attitudes towards getting a mortgage  - 4% of UK movers were worried or slightly concerned about getting a mortgage in October, compared with 6% in September - further suggest that the pause in rate rises could turn out to be highly significant. With Nationwide and Halifax reporting a slight rise in average property prices in October, the market continues to tick along.”