The vast majority of homeowners would be less likely to sell their property should values begin to dip, new research has found.
This has sparked concerns of a “homeseller drought” if – perhaps when – such a situation materialises.
Homeowners are also worried about the current rate of inflation insofar as its impact on the housing market, with the survey of 1,225 homeowners by HBB Solutions finding that 89% were worried about the current rampant rate, which the Bank of England puts at 10.1%.
However, the wider economic picture is yet to notably impact the housing market – house prices rose by 1% in June, and transactions bounced back with a 7.2% month-on-month increase in July.
Indeed, the figures show that homeowners still feel confident in their property – despite the worries around inflation – with just 22% stating they are worried that the value of their property might fall in the coming months.
However, this property market confidence could soon turn sour should house prices actually start to drop.
When asked if a fall in the value of their home would make them less likely to sell, 96% of those considering a sale said yes, suggesting a property stock drought could be on the cards should house prices start to suffer.
“While we’ve seen signs that the market is starting to cool, there’s certainly no evidence that a market crash is imminent,” said Managing Director of HBB Solutions, Chris Hodgkinson. He did, however, urge some caution:
“Of course, it would be naive to expect that such a turbulent economic outlook will have no impact on the housing market and it’s inevitable that some form of house price correction is on the horizon following such a heightened period of activity.
Those considering a sale may want to do so sooner rather than later to ensure they hit the market while it remains robust and prices are still holding strong.”
