Buyer demand sinks as Brits turn to renting instead of homeownership
The UK’s economic uncertainty has taken “a toll” on the housing market, new data suggests, as buyer enquires sink for the fifth month in a row with Brits turning towards renting instead of homeownership.
According to research by the Royal Institution of Chartered Surveyors (RICS) today, demand from new buyers collapsed more than a third in September, having already fallen 38 per cent a month prior.
Agreed sales also remain in the red, with September’s figure representing the softest reading since May 2020, when Brits largely ‘stayed put’ during the beginning of Covid-19 lockdown measures.
Limited supply of housing stock has continued to stoke prices, the RICS’ data said. However, the pace of growth has “faded markedly” in the past month.
With prices continuing to scale alongside mortgage rates, the lettings market has boomed.
“Is the government’s call for growth, growth and growth leading to recession, recession and recession in the UK housing market?” CEO of property site Twindig and former director at brokerage Jefferies, Anthony Codling, asked today.
“As the UK housing market slows, it appears that the actions of the ‘growth’ government might actually be leading the charge of the ‘anti-growth’ coalition.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added that“new buyers are pausing for breath while considering the pace and size of future interest rate hikes.
“We’re told more borrowers have higher loan-to-value mortgage debt than in the last financial crisis of 2008 but we’re not seeing signs of a major correction in our offices yet.”