Buyers growing in confidence while sellers still have the jitters
The supply of properties within budget and in the right locations continue to pose challenges for buyers. However, the good news is that, across the UK, there has been a 5% fall in the number of home-hunters whose search was limited by these factors over the past 12 months.
Finding the dream location is less of a challenge for first-time buyers. Their primary challenge is affordability, with saving for a deposit (50%) and securing a mortgage (43%) ranking as the factors most frequently referenced by buyers as the main obstacles to homeownership. Despite this, first-time buyers are the largest buyer demographic active in today’s market.
While buyers are feeling less restricted in their property searches, homeowners and investors are still wary of the ongoing economic uncertainty, with 36% citing this as a concern, along with a fear of not achieving their asking price (31%).
Upsizing a key motivation for moving home
Moving to a bigger home was the most referenced reason for purchasing a new property this year, with 28% of respondents citing this as their key driver for house hunting. This was particularly prevalent among younger families (39%). Empty-nesters, however, show greater flexibility over location - often with the intention of moving closer to family - with over a third (36%) citing ‘moving to a new location’ as their overarching motivator when searching for their new home.
More people are active in the property market, providing a boost to agents
There has been a modest increase in the number of people actively looking to buy, sell or rent a property. In a boost for agents, these active property seekers (32%) are more serious about moving than ever before with nearly a third (31%) stating they are likely to act on this in the next year.
Home-hunters are also more determined, with 40% confidently stating they know exactly which house or street they want to live on.
Confidence slowly returning to the market
Andy Marshall, Chief Commercial Officer, Zoopla, comments: “With the property market, it’s easy to focus on the hard data like the number of sales, but it’s also important to scratch under the surface to understand what is motivating people to make a move.
“We are seeing a polarisation of the market. Confidence is slowly returning among buyers, but this is moderated by a feeling of caution among sellers, with ongoing economic uncertainty causing them to doubt whether they will achieve the asking price they believe their property is worth. This offers a great opportunity for agents to realign sellers’ expectations whilst also educating them on the resurgence the market has seen in the first month of the year.
“What’s more, there are increasing numbers of people who are active in the property market and those seeking a new property are serious about making a move. This again provides fantastic opportunities to agents to highlight their local knowledge and expertise, bringing together buyers and sellers and helping both to reach their property goals.”