Advice for house sellers in Yorkshire’s ‘less urgent’ property market

Aerial drone photo of Harrogate, North Yorkshire, showing residential housing from above

A late August 2022 survey of more than 1,000 potential buyers reveals that commitment to move has also declined, at least in the short term.

The net balance of people who are more committed to moving in the next three months fell to -1.7%, while +7.1% feel more committed to moving next year, from +22% in April 2022.

However, the sentiment remains more positive in the medium term, with a net balance of +15% indicating that they are more determined to move in the next two years, on par with last fall.

Ed Stoyle, manager of Savills in Yorkshire

Those looking to enter the market or extend their borrowing are the most cautious when asked if they are committed to moving in the next six months.

This caution is mostly expressed by those looking to increase their size (net balance of -10%) and those looking for a second home (-31%) or an investment opportunity (-8.7%).

But not all buyers are discouraged by the tougher economic outlook. Those looking to downsize (+6.6%), relocate (+7.4%) or live in areas of the UK (+3.9%), such as Yorkshire and surrounding areas, are more determined to move within six months.

Lack of stock remains a problem with more than half of buyers.

Impact of interest rates and rising cost of living

For the majority of buyers, the amount they plan to spend on their new home has not changed. Most respondents plan to use the same source of funding.

About 7.8% plan to spend the same, but are likely to cut back on borrowing and dip more into equity.

However, recent interest rate hikes and the rising cost of living are impacting buyers’ budgets in some areas of the market.

Nearly a third of potential buyers said they cut their budget in response to these factors.

This is especially true for those most dependent on borrowing – including half of first time buyers and 44% of ‘first time buyers’.

The least affected cohorts were downsizing, with two-thirds keeping the same budget and funding, and those moving outside of London (59%).

Ed Stoyle, director of Savills in Yorkshire, said: “Although transactions have remained robust over the summer, there is now less urgency in the market, with rising debt costs affecting budgets. of those most dependent on a mortgage.

“The rising cost of living is also making shoppers much more aware of how much they’re willing to spend.”

He added: “Ultimately, in the short term, the market will be driven primarily by homeowner needs, rather than the lifestyle influences that have driven the market during the pandemic…

“After more than two years of skyrocketing home prices, sellers will need to become much more realistic when pricing their homes, especially as more inventory comes to market.

“As inflation comes under control, the cost of debt comes down and we see a recovery in domestic and global economic growth, we can expect price growth to return to these markets. “