New data has suggested homebuyer demand across England fell by 9.4% in the final quarter of 2022.
Wider economic pressures alongside the increased cost of borrowing pushed property purchases beyond the realms of affordability for many buyers, seeing homebuyer demand fall to 48.3% on GetAgent’s Hotspots Demand Index* which is based on the proportion of stock listed as SSTC or under offer.
This represents a 17.2% decline across 2022 on average. Regionally, demand remains highest in Durham at 68%, though this is some 14.6% lower than the same period last year.
The worst hit places were the Isle of Wight (-25.5%), East Riding (-25.5%), and Derbyshire (-24.8%), and the worst hit places in the last quarter were East Riding (-12.9%), Bedfordshire (-12.8%), and Staffordshire (-12.7%).
According to GetAgent’s data, sales demand has not grown in any area of the country in the past year or the past quarter.
“After a couple of years of manic demand, activity, and price increases, we end 2022 with a gentle bump back down to earth,” said co-founder and CEO of GetAgent.co.uk, Colby Short:
“Economic gravity was always destined to enforce the declines we’re currently seeing and, in many ways, it’s a surprise that it’s taken this long to happen.”
Short did, however, state that the forecast “isn’t actually that bleak”:
“Look at the long-term history of house prices and you’ll see that the property market is never down for long, regardless of how many pandemics and economic crashes are thrown its way.
However, the fortunes of the housing market are very much in the hands of the Bank of England at the moment because, until interest rates come down and borrowing becomes more affordable, lenders are going to be tighter with their mortgage offers and buyers are going to be nervous about taking on these relatively high levels of risk.”
* GetAgent’s Hotspots Demand Index monitors homebuyer demand across England on a quarterly basis. Current demand is based on the proportion of stock listed as already sold (sold subject to contract or under offer) as a percentage of all stock listed for sale. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.
