Home Property Homebuyers ready to make their move, bringing a surge in property market positivity

Homebuyers ready to make their move, bringing a surge in property market positivity

by Seamus Doherty Property Reporter
22nd Oct 24 11:40 am

The latest market insight from London lettings and estate agent, Benham and Reeves, has found that whilst many buyers have been deterred from purchasing due to higher interest rates, the recent base rate reduction seen in August has brought renewed enthusiasm, with 61% of buyers planning to take the plunge in 2025.

The survey of 1,203 current UK homebuyers, commissioned by Benham and Reeves found that first-time buyers currently account for 68% of those looking to climb the property ladder.

49% have been house hunting for six months or longer, with 43% of those having been searching for over a year.

House price affordability ranks as the key reason that many buyers are yet to make their move, with a lack of stock within their desired area and the ability to accumulate a suitable deposit also proving to be some of the biggest barriers.

However, when questioned specifically about the current landscape with respect to interest rates, 59% of those surveyed said that the peak in interest rates since August of last year to 5.25% had been a key deterrent.

But, with the first base rate cut in four years coming in August and further reductions on the horizon, could this be about to change?

61% of those surveyed by Benham and Reeves stated that they plan to purchase within the next year, suggesting the UK property market could be about to benefit from a substantial boost in buyer activity.

67% stated that they are hoping to see some for on home buying initiative introduced in the Autumn Statement this month, such as stamp duty holiday or the relaunch of a Help to Buy scheme. However, as it stands, they look set to be disappointed with no suggestion of any such help coming from the new Labour government.

Despite this hope of a foot up onto the ladder, just a quarter of those surveyed said they had considered a low deposit mortgage product, such as a mortgage deposit scheme, or the recently launched Nationwide mortgage offering loans of up to six times income with a 5% deposit.

Director of Benham and Reeves, Marc von Grundherr, said, “Property market activity has been somewhat subdued of late and it’s clear that high interest rates and the resulting increase in the cost of borrowing have played a major factor in preventing the nation’s homebuyers from making their move.

Whilst interest rates remain high, the first base rate cut in four years has helped to reassure buyers that the outlook is improving and, with more interest rate reductions on the horizon, many now intend to push on with their purchase over the next 12 months.

This should help boost the returning market momentum that has been observed in recent months and puts the market in very good shape for the year ahead.

However, those hoping to see some form of buying incentive introduced in the upcoming Autumn Statement are likely to be disappointed as, so far, there’s been no sign of any such initiative from the current government.”

Leave a Comment

You may also like

CLOSE AD