Demand to move home remains resilient despite political uncertainty

Homeowners' commitment to move remains resilient despite ongoing economic and political uncertainty, according to the latest research from Savills.

A survey of approximately 1,100 prospective buyers and sellers found that a net balance of +24% plan to move within the next year, underpinned by lifestyle and life-stage needs.
 
This marks a significant rebound in confidence compared with the same time last year, when 23% more people were planning to stay put rather than move in the next year.

The strongest commitment to move was recorded in London, where 31% more people were looking to move than stay put, compared to 24% across the regions.

Activity is also being driven by those looking to relocate, who reported a net commitment balance of 38%, highlighting the market drive from need-based movers.

By contrast, second-home buyers remain the most cautious, as well as those looking to move at the top end of the market (£2 million+), reflecting the discretionary nature of these parts of the market, as well as the introduction of the high value council tax surcharge.

When asked what makes them most hesitant about moving in the current market, domestic political change emerged as the biggest barrier to moving (31%), followed by a lack of quality stock (17%), and the risk of future tax changes (15%).

Savills research also indicates that buyers’ budgets have come under increased pressure from higher mortgage costs, although spending intentions remain more resilient than they were during periods of peak market disruption last year.

Location remains a top priority above all else for those who are considering their next move. More than half of respondents (58%) agree that location is the factor that they are least willing to compromise on, while proximity to family was identified as the most important consideration for 40%.

Meanwhile, a third (34%) said that having more suitable properties available within their preferred location would increase their likelihood of moving over the next year, further emphasising the issue that a lack of the right stock is having on home mover decision making.

Frances McDonald, director of research at Savills, commented: “While there remains a degree of uncertainty around the wider economy and housing market, there is still a strong undercurrent of demand, particularly among needs-based buyers whose decisions are driven by life stage and lifestyle priorities rather than wider market conditions.

“The increase in mortgage costs has caused some households to pause and consider their options more carefully, while the prospect of future policy changes in the lead up to the Autumn Budget is holding back movers in higher price bands. Greater clarity on tax direction in the coming months should provide the market with confidence to increase transactional activity.

“While the number of homes available for sale remains relatively high across much of the UK, a slowdown in new listings is beginning to limit buyer choice. As transactions have slowed, properties are taking longer to sell, leaving more stock on the market. However, quality stock is still moving quickly, with demand for turnkey homes in the right location remaining strong. As a result, buyers are often prepared to act decisively when the right property becomes available."