Some 79 per cent of home buyers and sellers will not be deterred by the upcoming general election, research from Savills has found.
The research, which surveyed 1,200 prime home movers, found for that vast majority of buyers and sellers an upcoming general election does not change their plans to move, and 13 per cent said they were even more committed to do so in the next 12 months.
Just 8 per cent said they were less committed to moving as a result.
Lack of concern was most evident among downsizers and those looking to relocate, while investors and second-home buyers are more likely to wait and see.
The commitment to move within the next six months increased by 32 per cent which is the highest level in over two years.
The uplift in confidence was most noticeable among first-time buyers and upsizers.
Savills head of residential research, Lucian Cook, said: “With mortgage markets steadily improving, the outlook for the housing market has certainly improved and has entered the first stages of recovery.
“For the first time since the mini-budget, the survey signalled stronger confidence among typically more leveraged buyers, pointing to a market that will be less heavily dominated by cash and equity-rich buyers.
“Despite a general election nearing, the short odds on a change in government mean that political change is already largely priced into the market, and for the most part, buyers will remain undeterred about pressing ahead with moving decisions.
“However, there will be more caution at the top end of the market which is typically much more discretionary. Buyers here are more likely to play a waiting game, and price sensitivity may remain in the run-up to the election.”
Increased budgets
With the first rate cut in sight, Savills said movers have started to increase budgets with nearly two times as many respondents upping their budgets compared to the summer (15 per cent vs 8 per cent in July).
An uplift in budgets also coincided with a shift in financing, with more reversing back to fixed-rate mortgages.
The research found that 44 per cent of respondents said that they would opt for a two year fixed mortgage, an increase from 31 per cent in January.
Meanwhile, only half as many will be opting for a variable mortgage compared with January (22 per cent vs 11 per cent).
When it comes to buyer priorities, the vast majority of respondents agreed size and number of rooms in a house were the most important attributes to consider when purchasing a new home.
Just 31 per cent ranked access to outdoor space as a top priority, compared with 42 per cent in February 2022.
Meanwhile, just 7 per cent ranked a separate space to work from home high on their wish list.
Cook added: “With fewer people working from home, pandemic drivers are beginning to unwind, with square footage and bedroom numbers more important than for prime buyers, particularly for upsizers operating with more constrained budgets.”
