A large number of prospective buyers had postponed that move until the Spring Budget had come and gone, research from information platform Home Sale Pack has found.
They were waiting to see whether the government would introduce any homebuying incentives in the Budget, as the Chancellor considered – and then dropped – launching a mortgage scheme with a 1% deposit.
Some 82% of current buyers say that now the Spring Budget has come and gone, they plan to ramp up their search for a new home.
Despite this positivity, surprisingly half (54%) of buyers are concerned that the base rate could rise once again this year, despite most economists predicting a cut from its current level of 5.25%.
Ruth Beeton, co-founder of Home Sale Pack, said: “There is clearly a real determination among hopeful homebuyers. They have been waiting for the market to settle down and hoping for some kind of government-led intervention to make buying that little bit easier, but even though no such incentives have been provided, and even though interest rates are yet to start falling, most buyers are gallantly holding firm and pushing forward with their plans to buy.
“It seems that one definite concern is that rates will once again increase, but it’s unlikely that this is going to happen. We fully expect to start seeing rates come down this year, and this increased affordability will result in a surge of buyer demand on the market.
“Agents and other property professionals need to be ready for an increase in activity, and a big part of that is having systems and processes in place to ensure that each homebuying and selling journey moves as smoothly and efficiently as possible.
“By focusing on areas such as the better preparation and provision of upfront information, they will be better positioned to avoid the inevitable delays that come with a surge in market activity, like those we encountered during the market boom brought on by the pandemic stamp duty holiday.”
The two most common challenges, which have both been cited by 29% of buyers, are securing an affordable mortgage with mortgage rates as high as they currently are, and finding a buyer for their current home in order to fund an onward purchase.
Other challenges include being able to fund a mortgage on current income levels (18%), saving the required deposit (14%), and finding a buyer who is willing to negotiate on price in order to make the purchase more affordable (10%).
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