"Would-be buyers are facing a hiked cost of living and borrowing has been expensive over the past few months, so many have postponed their buying aspirations"
- Colby Short - GetAgent
Homebuyer demand dipped by -3.3% during the third quarter of 2023, with the market also remaining -16.2% off the pace when compared to this time last year, according to data released this morning by GetAgent.
GetAgent’s Homebuyer Demand Index is a quarterly look at the property market across England, revealing where the nation’s hottest spots are when it comes to homebuyer appetites, based on the ratio of total for sale stock that has already been sold subject to contract or marked as under offer.
The latest index for Q3, 2023, shows that, despite fears that wider economic issues would devastate the housing market, it actually remains in admirable health with 41.3% of all homes listed across England already sold subject to contract.
The market has, however, seen demand fall by -3.3% in the third quarter of 2023, with demand also now -16.2% lower than it was this time last year.
Quarterly change
Only two English regions have seen demand rise over the past quarter.
A 4% quarterly rise in Lancashire now puts demand at 45.5%, while Greater London has seen a marginal 1% increase since Q2.
The largest quarterly reduction has been recorded in Rutland where demand has fallen by -12.2% to sit at 38.1%. Other areas to see significant demand drops include the City of Bristol (-6.4%), Cheshire (-5.7%), Cornwall (-5%), and Leicestershire (-4.8%).
Annual picture
As far as annual change goes, all regions of England have recorded a decline in buyer demand. Rutland (-21.9%), the Isle of Wight (-21.5%), and Norfolk (21%) have seen the largest declines, while the City of London (-5.3%), Lancashire (-8.9%), and Greater London (-10%) have seen the smallest declines, but decline nonetheless.
Current hottest spots
Despite recording the second-largest quarterly decline, the strongest homebuyer demand in England is currently in the City of Bristol. Hopeful homebuyers here are facing a difficult challenge due to the fact that 61.1% of all homes for sale are already SSTC. But bad news for buyers is, of course, good news for Bristol sellers.
No other region is reporting demand of over 50%, with the closest coming in South Yorkshire (47.6%) and Tyne & Wear (47.3%).
The spots where demand is currently lowest and buyers will face the least competition are the City of London (20.8%), Lincolnshire (30.2%), and the Isle of Wight (32.3%).
Co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “The state of England’s economy was bound to have a knock-on effect on the housing market. Would-be buyers are facing a hiked cost of living and borrowing has been expensive over the past few months, so many have postponed their buying aspirations.
"Furthermore, we’re just coming out of the traditionally quiet summer months, so fully expect demand to pick up with the often busy Autumn season.
"We’re also seeing confirmation that the housing market has not tanked in the wake of economic uncertainty to the extent that many industry commentators warned it would. Prices have cooled but not crashed and the economy is already showing signs of recovery.
"So, while the heady days of pandemic demand are unlikely to be repeated any time soon, we should see buyer demand grow as we approach the end of the year.”
