Homebuyer appetite remains strong, but we need interest rates to continue falling
New research has revealed that buyer demand dampened between the second and third quarters of this year, but rates remain higher than this time last year.
The latest figures have come from GetAgent’s Hotspots Demand Index, which monitors homebuyer demand across England on a quarterly basis. The research looks to the proportion of housing stock listed as already sold (subject to contract) as a percentage of all stock listed for sale.
Experts found that demand for homes stood at 43.9% in Q3 2024, marketing a reduction of -0.3% since the previous quarter.
Looking at the research more closely, the highest level of homebuyer demand is in Bristol where, in Q3 2024, 61.4% of all for sale properties were sold subject to contract. What’s more, the county to record the largest quarterly increase in sales demand was Bedfordshire where an uptick of 1.8% was seen compared to Q2 2024.
Moreover, in both Durham and Tyne & Wear, the number of homes sold subject to contract increased by 1.2% while Somerset and Oxfordshire saw a rise of 1.1%.
Commenting on the findngs, Colby Short, Co-founder and CEO of GetAgent.co.uk, said: ‘Following Q2’s promising boost in homebuyer demand, it’s disappointing to see it drop off again in Q3, especially considering that we all expected to see a bit of a surge following the general election and the newfound level of certainty that this was expected to provide.
‘But interest rates simply haven’t fallen as quickly as many buyers may have hoped, so there remains a sense of buyer hesitation across the market.’
‘However, this is unlikely to last following the first rate cut in four years in August and we expect demand to now begin to strengthen, particularly as we head into Q4 and what is typically a busy time of year for the market,’ Colby added. ‘We can also be optimistic about the fact that while quarterly demand has stuttered, buyer appetite is better today than it was last year, which means the market is headed in the right direction.’
On the topic of optimism, the research also shows that Nationwide buyer demand is looking stronger than ever – 2.6% more homes were sold subject to contract across England, though the annual boost is significantly higher in some countries.
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