Savills’ extensive survey of 1,200 individuals looking to buy or sell in the upscale housing segment presents an interesting narrative. An overwhelming 79% of respondents are sticking to their guns, with their plans to move remaining steadfast despite the looming general election. Even more intriguing is the 13% who are doubling down on their determination to relocate within the next year. On the flip side, a mere 8% are tapping the brakes on their moving plans, hinting at a small segment of the market taking a more cautious stance.
A Closer Look at the Market Movers
The survey shows varying attitudes across different groups. Downsizers and those seeking new pastures by relocating are particularly bullish, seemingly shrugging off any election-related concerns. Contrastingly, investors and those eyeing a second home prefer to wait out the political storm, displaying a touch more hesitation.
A Surge in Commitment
Broadening the lens to the general market sentiment reveals a buoyant mood. Commitment to move within the six-month horizon has surged, marking a +32% net balance increase. This signifies the highest level of eagerness to move witnessed in over two years, with first-time buyers and those looking to upsize showing particularly strong momentum. This revival in confidence comes after a period of subdued activity, signaling a robust recovery phase for the housing market.
Savills’ insights offer an optimistic outlook: “With mortgage markets steadily improving, we’re stepping into the early phases of recovery. The resurgence of confidence, especially among buyers traditionally reliant on mortgages, indicates a shift towards a market less dominated by cash-rich players.”
Election or Not, The Market Moves On
Despite the general election’s approach, the anticipation of political change seems already baked into the market’s calculations. The majority of buyers remain undeterred, ready to press on with their purchasing plans. However, a note of caution resonates at the higher end of the market, where decisions are more discretionary, and buyers may adopt a wait-and-see approach, remaining sensitive to price fluctuations pre-election.
Budgets on the Rise
One development is the increase in budgets among prime movers, with twice as many reporting a budget increase compared to the summer months. This trend coincides with a shift back to fixed-rate mortgages, signaling growing financial confidence and a readiness to invest more in property dreams.
Shifting Homebuyer Priorities
As the pandemic’s influence wanes, so do the trends it spurred. The current wave of buyers places a premium on space, with 65% prioritising home size and 54% the number of rooms. This marks a significant shift from the height of remote work and lockdowns, where gardens and home offices dominated wish lists. Today, access to outdoor space and dedicated work-from-home areas have taken a backseat, reflecting a return to traditional homebuying values.
Savills’ survey paints a picture of a resilient housing market, with prime movers charging ahead undaunted by political uncertainties. The surge in commitment, coupled with increasing budgets and a return to pre-pandemic priorities, suggests a market in robust health, ready to deal with whatever twists and turns lie ahead. As the general election draws near, it’s clear that for many in the UK’s prime property sector, it’s business as usual.