Buyers are returning to the housing market following a pause in Bank of England base rate rises, according to the property portal Zoopla. New analysis from the website reveals that estate agents in London have seen a 16% rise in enquiries from buyers since August bank holiday, and a 12% rise nationally.
Zoopla says that the number of agreed sales has also increased, bringing it closer to 2019 figures. Demand for homes is, however, down by a third compared to a year ago, when the market was at its most frenetic, also putting it in line with pre-pandemic levels. Supply in the market is up, giving buyers more choice of homes, according to Zoopla.
Zoopla’s executive director of research, Richard Donnell said: “Our consistently held view is that mortgage rates over 5% mean lower sales and year-on-year price falls. The closer mortgage rates get to 4%, the more buyers will come back into the market, supporting sales and pricing levels.’
According to Zoopla, today’s buyers are looking for a home they can live in long term and are unwilling to compromise on what they want, despite mortgage rates. First time buyers are therefore looking at longer-term mortgage deals, which enable them to borrow more, or waiting in case prices fall.
Says Richard Donnell: “An unwillingness to compromise is a rational approach as buying a home is a big and expensive life event. Younger buyers are taking out longer mortgages to boost buying power, as they want to buy a home they are going to be happy in for a decade or longer.”
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Read more about this story on the Zoopla website.
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