Home movers are heading into next week’s Budget increasingly critical of government housing policy. New research from OnTheMarket shows that 43% believe recent government measures have damaged the property market. Just 21% think they have helped.
Concerns over borrowing costs are growing. Some 41% of active movers now expect interest rates to rise over the next six months, compared with 29% in the previous quarter.
Buyers remain confident despite rate fears
OnTheMarket’s latest Property Sentiment Index draws on surveys of more than 6,400 people conducted in September. The findings show that 89% of active buyers remain confident they can raise the funds needed for their next home, unchanged since May.
This suggests many buyers are factoring higher borrowing costs into their plans rather than abandoning them. Among the wider public, 44% now anticipate a rate rise over the next six months, up from 34%, while just 8% of active movers expect rates to fall.
House price expectations edge higher
House price expectations have shown tentative signs of improvement. A third of respondents (33%) now expect property prices to rise over the next 12 months, up from 31% – the first increase in the measure for a year.
Renters also remain relatively confident, with 87% expecting to find a property and move within six months. However, dissatisfaction with government policy extends beyond active movers: among the wider public, 35% believe recent government measures have damaged the market, while just 9% think they have helped.
OnTheMarket urges government to act
Jason Tebb, president of OnTheMarket, believes the Budget offers an opportunity to address concerns among buyers and sellers. He said: “Going into the Budget, home movers are soldiering on with one arm tied behind their back. Twice as many think government policy has hurt the property market as believe it has helped, and far more now expect interest rates to rise. Yet buyers’ confidence in their own finances hasn’t budged, and they’re still coming to market ready to move.”
Tebb warned that continued uncertainty could undermine confidence. He added: “But there’s only so long people can keep battling against the odds. Next week’s Budget offers an opportunity to restore long-term confidence in the market.”
Tebb wants the government to extend its Your First Home scheme to existing properties rather than limiting it to new-build homes. He is also calling for mortgage market reform and cuts to stamp duty. He added: “The government’s Your First Home scheme should be opened up to existing homes, not just new builds, and paired with wider mortgage market reform and cuts to stamp duty. Taken together, those measures would make a meaningful difference to buyers and help get the market moving on a sustainable footing.”
