Is Buyer Demand Drying Up?

As we continue to ride a wave of uncertainty throughout the UK property market, one thing is for certain. It is becoming increasingly difficult for many to purchase a property. The result of this is that many are starting to notice that the demand for buying is drying up. In the sense that for many, buying is not a feasible option but a mere dream. Why is this the case? What does this mean for you? 

As you will be aware from what is trending in the news, interest rates continue to rise. Whilst The Bank of England are trying to damage limitation, with the aim to reduce interest rates, the harsh reality is that it’s not a viable option for many to buy a house, especially first-time buyers. These factors are contributing to buyer demand drying up. For example, see below this graphic provided by Zoopla:

(Graphic credit: Zoopla)

This graphic evidently suggests that with recent events, buyer demand is drying up across the UK. With the South East reportedly experiencing a 40% fall in buyer demand.

So, whilst mortgage and interest rates are high, this disrupts the selling chain. Less people are able to afford a property regardless of these rates. The shortage of affordable supply of property negatively compliments the high rates found nationwide. Whilst date suggests that people are still eager to move, many don’t anticipate the usual quiet end of year period, to change the current situation. 

The answer to the question, is buyer demand drying up? It is a resounding yes. Can buyers be blamed for this dry up? Absolutely not, the market is simply an unsustainable one that should hopefully begin to clear up and balance itself out in the new year. However, that is not what some want to hear, especially those looking to move out immediately. But what is the alternative? 

Firstly, it’s important for buyers, especially first-time buyers to not give up and lose hope. The market is expected to return to a somewhat affordable one. Many can take this opportunity to continue saving a deposit and arranging their finances to be able to be well positioned in the future. After all, the whole process of buying a house can be one that takes several months. Staying active in the market, keeping up to date with the news will enable potential buyers to be as prepared as possible.

If you’re unable to wait, the alternative could be renting. Many find themselves in this position and unfortunately, that’s the issue. The demand for rent is too great compared to availability. Many properties are also coming off the lettings market due to landlords no longer finding it sustainable to rent, thus, potentially looking to sell their property. 

Whilst it currently seems that, especially with social commentary, the market is in shambles and hopeless, that is not the case. Yes, it’s not the easiest to navigate, but it’s certainly not the end of the world nor is it as disastrous as made out to be. 2022 as a whole, has been a strong year for the housing market. There is optimism that the market bounces back in the first quarter of 2023 and that very soon, housing will be more accessible and affordable. 

As always, if you have any questions, would like some advice or have any queries surrounding what to do in the current market, the Zoom team are here to help. Please feel free to get in touch:

‍T: 0333 358 3095 Lines answered 8-8 Mon to Fri,9-5 Sat, Calls monitored on Sun

‍E: sales@zoomestateagents.co.uk

‍‍E: lettings@zoomestateagents.co.uk

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