Buyer demand levels declined in the fourth quarter of 2022 as economic pressures and the increased cost of borrowing continue to force many people to re-evaluate their home buying plans.

According to the latest Homebuyer Hotspots Demand Index by GetAgent, buyer demand in England is currently at 48.3% which marks a -9.2% decline since Q3 2022 and -17.3% decline since the same quarter last year.

GetAgent’s index monitors homebuyer demand across England on a quarterly basis. Current demand is based on the proportion of stock listed as already sold, as a percentage of all stock listed for sale. For example, if 100 homes are listed and 50 are already sold, GetAgent’s demand score would be 50%.

The estate agent comparison site said its latest figure of 48.3% suggests the pandemic-inspired property boom is being brought “back down to Earth” by the significant economic pressures facing the UK’s prospective homebuyers.

“After a couple of years of manic demand, activity, and price increases, we end 2022 with a gentle bump back down to Earth,” commented co-founder and CEO of GetAgent, Colby Short. “Economic gravity was always destined to enforce the declines we’re currently seeing and, in many ways, it’s a surprise that it's taken this long to happen. 

“You’re going to read all sorts of pessimistic property headlines over the coming months, but the forecast isn’t actually that bleak. Look at the long-term history of house prices and you’ll see that the property market is never down for long, regardless of how many pandemics and economic crashes are thrown its way.

“However, the fortunes of the housing market are very much in the hands of the Bank of England at the moment because, until interest rates come down and borrowing becomes more affordable, lenders are going to be tighter with their mortgage offers and buyers are going to be nervous about taking on these relatively high levels of risk.”

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