According to a recent survey by First Pacific Savills, more than 1400 potential buyers and sellers revealed that 30% of respondents are more determined to move within the next six months, a significant increase from 14% in July 2023.
Especially for buyers relying on mortgages, the decline in mortgage interest rates might reduce their fixed-cost levels, further prompting them to consider purchasing a home.
Furthermore, survey results show that 57% of respondents move solely to start a new life, while 31% believe their affordability has improved, or housing prices have bottomed out. Additionally, 12% choose to invest funds in real estate rather than other areas.
These survey results align with the latest data from the Royal Institution of Chartered Surveyors (RICS), indicating that as of December last year, new house purchase inquiries reached the highest level since April 2022.
When asked about reasons for moving, first-time buyers most commonly cited having saved enough for a down payment (32%), followed by finding rent too expensive and preferring to invest in their own home (26%). Additionally, 47% of respondents stated they were moving because their current house was too large, 15% to release funds for retirement, and 12% to be closer to local amenities and transportation.
The survey also reveals that the majority of potential buyers do not see the need to adjust their budgets. Only 14% stated that they reduced their purchase amount, while almost the same number of people hoped to increase spending.
According to Savills' research, cash buyers accounted for 43% of transactions in 2023, an increase from the pre-pandemic 35%.
For 2024 predictions, the average UK house price is expected to decrease by 3.0%. However, due to lower dependence on borrowing, the high-end market (roughly referring to the top 5-10% by value) is expected to recover more quickly.
Specifically, in 2024, the high-end market in central London is expected to be the strongest-performing area, with house prices anticipated to remain stable or experience less decline, while high-end markets that performed strongest during the pandemic are expected to see a 1.5% decrease.
