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Demand ‘shifts to rental properties while buyers wait for more certainty’

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According to a real estate website, there is a wave of demand in the rental sector as some potential homebuyers are hesitant.

Rightmove said the number of inquiries about rents in October was 23% higher than the same month in 2021.

Mortgage rates have risen after the mini budget in September, but lately there have been signs of a decline.

Earlier this week, Moneyfacts.co.uk reported that average five-year mortgage rates had fallen below 6% for the first time in seven weeks.

An increase in the Bank of England’s base rate also drives up the cost of borrowing, and rising prices could make it more difficult for people to raise enough cash for deposits to buy a home overall.

Some potential homebuyers may be sitting on the sidelines for a while to see what happens with mortgage rates and home prices in the coming months.

A Rightmove survey found that two-fifths (42%) of first-time buyers planning to move up the ladder in the next few years had already saved their entire down payment.

According to the website, this indicates that there is a group of startups waiting to enter the market in the future, when they feel they have more financial security.

A survey among rental agents shows that they are processing an average of 36 applications per home.

Tim Bannister, real estate expert at Rightmove, said: “It is completely understandable why some buyers, especially some first-time buyers, are waiting for a little more financial security.

“Now that there are signs that mortgage rates are stabilizing, the indications are that they will stabilize at a higher level than previous buyers.

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“If someone has saved their down payment and is ready to move in, they may find that this presents a better opportunity now than it did a few weeks ago, especially as more options enter the market and some sellers are closing in on Christmas. more competitive pricing leading up to Rs.

Amardeep Lall, Head of Letting at Manning Staunton, said: “If a potential tenant can share as much information as possible with us at the start of the process, it helps us find a place for them faster, and it helps them. placing it at the front of the queue for homes that become available.

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