Housing Market Confidence Remains Strong Despite Doubts

Housing market confidence stays resilient as buyers, sellers and renters remain optimistic despite wider economic and policy uncertainty. According to the latest OnTheMarket Property Sentiment Index, optimism endures even as questions grow about the government’s housing policies and its ambitious pledge to deliver 1.5 million new homes by 2029.

The September findings also underline renewed calls for property tax reform, with many stakeholders seeking changes to make the system fairer and more transparent.

Housing Market Confidence Persists Among Buyers, Sellers and Renters

Despite wider economic pressures, confidence in the property market remains intact. The report highlights that 80% of buyers feel assured they can raise funds for their next purchase. More than half of these buyers (52%) describe themselves as very confident, signalling that financial obstacles may not be as daunting as once assumed.

When it comes to expectations, the outlook is divided. Nearly half (46%) believe house prices will rise in the coming year, while two-thirds (67%) anticipate higher rents. This indicates that while affordability remains a concern, the appetite for home ownership and rental accommodation shows no sign of weakening.

Renters, too, remain upbeat. Around half expect to secure a property within three months, suggesting that tenant demand continues to outpace supply in many parts of the country.

Transactions Still Expected Within Months

Market activity also shows resilience. Both buyers and sellers continue to expect movement in the short to medium term.

• 40% of buyers believe they can purchase a property within three to six months.
• 27% are even more optimistic, expecting to complete in less than three months.
• On the seller’s side, four in ten expect an acceptable offer within three months, while another significant proportion forecast a sale within six months.

For renters, the picture is equally positive, with half anticipating a successful rental agreement within three months.

Housing Market Confidence and Financial Resilience at the Forefront

One of the most striking insights from the September index is the level of financial confidence among buyers. A robust 80% believe they can raise funds, reinforcing the impression that mortgage availability and affordability, while challenging, are not preventing determined buyers from entering the market.

However, not all is smooth sailing. 15% of respondents expressed uncertainty about financing, underscoring ongoing concerns about interest rates, mortgage criteria, and broader economic factors that could affect household budgets.

Growing Doubts About Housing Policy

While sentiment remains broadly upbeat, confidence in government policy tells a different story. Nearly half of respondents (47%) doubt that the government will achieve its housing target of 1.5 million new homes by 2029.

This scepticism stems from the current pace of delivery and the perceived lack of a detailed roadmap. Without stronger policy measures and planning reforms, many believe the target will be missed, potentially widening the housing gap.

Housing Market Confidence and Property Tax Debate

The index also sheds light on attitudes towards property taxation, with very few supporting the current system.

• Only 12% want the current stamp duty structure to remain unchanged.
• 25% favour spreading payments over several years, easing the financial burden on buyers.
• 21% back a new property tax for homes valued above £500,000.

These figures highlight a clear appetite for reform, particularly in light of rising house prices that have made the existing system increasingly unpopular among both first-time buyers and existing homeowners.

Market Activity: A Balanced Picture

While confidence remains, the figures point to a stabilising market. New property listings increased by around 5% each month up to August, before a seasonal slowdown began to take effect.

Price reductions also appear to be levelling out. Only 11% of listings saw price cuts in August, compared to 14% in both June and July. This suggests that sellers are becoming more realistic about pricing while buyers adjust to the current financial environment.

Expert Commentary: Optimism Amid Uncertainty

Jason Tebb, president at OnTheMarket, noted that the resilience of buyers, sellers, and renters is particularly striking in today’s climate:

“Despite a certain level of economic and political uncertainty, it’s encouraging to see that confidence among buyers, sellers, and renters remains strong. Many property seekers are optimistic about their ability to move forward, whether buying, selling, or renting, and are adapting to market conditions.”

He also emphasised the importance of forthcoming policy decisions:

“As we look ahead to the Autumn Budget, it’s clear that further clarity and stability from policymakers will be crucial in supporting the property market and allowing people to make informed decisions about their property journey.”

What Lies Ahead for the UK Housing Market?

The overall picture from the September Property Sentiment Index is one of cautious optimism. While economic challenges and political uncertainty persist, confidence among buyers, sellers, and renters remains strong enough to sustain activity in the short term.

Key factors to watch include:

• Government policy clarity – The Autumn Budget may bring updates on taxation, planning reforms, or support schemes.
• Mortgage rates – Shifts in interest rates will directly affect affordability and borrowing confidence.
• Housing supply – Without significant progress towards the 1.5 million homes target, supply shortages could intensify, particularly in rental markets.

Ultimately, while sentiment remains positive, the housing sector’s long-term health will depend heavily on government decisions in the months ahead.