Property Sentiment Index, September 2025
The OnTheMarket Property Sentiment Index explores how house movers are feeling in regards to the property market, supported by information from our personal platform. This version exhibits that the general public anticipate each gross sales and rental costs to rise over the subsequent 12 months whereas these planning to purchase, promote or hire stay assured about making their transfer inside the subsequent three months or, at most, inside a three-to-six-month timeframe.
Moreover, there may be an urge for food for reform inside the property tax system, with solely 12% wanting the present system to stay in place unchanged. Nonetheless, opinions are cut up in the case of selecting a substitute.
Sentiment in direction of the property market
Gross sales market expectations
When looking forward to the subsequent 12 months, just below half of property seekers imagine home costs will improve, a small fall from 51% who stated the identical three months in the past, suggesting a slight wavering in confidence within the UK property market. In the meantime, 24% imagine costs will keep the identical, up from 21% within the earlier quarter, and solely 13% anticipate home costs to fall.
Vendor expectations
Amongst these trying to promote a property, 51% of all respondents, 4 in ten (39%) anticipate to obtain an appropriate provide inside three months, whereas the identical proportion imagine this can occur in three to 6 months (38%). Simply over one in ten (13%) predict they’ll settle for a suggestion inside six to 9 months and 6% say inside 9 to 12 months.
Purchaser outlook
These trying to purchase a property are typically assured that it received’t take lengthy to discover a house and have a suggestion accepted. Equally to the June version, 4 in ten imagine this can occur in three to 6 months, whereas an additional 27% anticipate it to take even much less time. Just below a fifth (17%) anticipate their search to take between six and 9 months.
Monetary confidence
Consumers stay constructive with eight in ten (80%) saying they’re assured of their skills to afford their subsequent property buy. This consists of 52% who’re very assured. In the meantime, 15% really feel not very assured or not assured in any respect and 5% say they don’t know.
New properties
Curiosity in new properties has remained regular amongst property seekers, with 42% more likely to take into account one as their subsequent property, a change from 46% in June. In the meantime 38% say they’re unlikely, up from 37% in June.
Rental market sentiment
Contemplating rental costs, expectations replicate the shortage of provide and growing demand, as two-thirds (67%) anticipate costs to extend, an identical proportion to June’s determine of 65%. In the meantime, 15% imagine rents will keep on the identical degree, whereas solely 5% suppose they’ll fall.
Renter outlook
Regardless of expectations for rents to extend, these trying to hire stay assured of their capability to discover a property and have a suggestion accepted rapidly. Half imagine they’ll have a suggestion on a rental property accepted inside three months and an additional 30% anticipate it to take between three and 6 months. Fewer than one in ten (9%) imagine it should take six to 9 months (9%), with 5% anticipating 9 to 12 months and 6% foreseeing a wait of over a yr.
Present occasions and coverage developments
Housing targets
The federal government continues to face challenges in assembly its goal of 1.5 million new properties, with expertise and assets working low. It comes as no shock, subsequently, that nearly half of respondents say the goal is unlikely to be met. 1 / 4 (26%) say it is extremely unlikely, whereas an additional 21% imagine it to be pretty unlikely. This represents little change in comparison with June’s outcomes of 49%.
Alternatively, 1 / 4 of respondents imagine the federal government is more likely to attain its goal of latest properties by the top of its time period in 2029. Of those, 8% say it is extremely doubtless, whereas 18% imagine it to be pretty doubtless.
Stamp obligation
Because the finish of the Stamp Obligation vacation in March, there was a lot dialogue about whether or not the property tax system ought to evolve with a spread of concepts floated thus far. Amongst respondents, solely 12% imagine the present system ought to keep in place unchanged. 1 / 4 are in favour of retaining the identical standards however spreading funds over a number of years slightly than requiring them up entrance. In the meantime, an identical proportion (21%) help the most recent proposition of introducing a property tax on any property valued over £500,000, with a better fee utilized to properties price over £1 million. Solely 12% say they help none of those three insurance policies and 30% stated they don’t know.
Rates of interest
Initially of this yr, the Financial institution of England’s base fee was set at 4.75% however has since dropped to 4%. In response, 30% of property In response,30% of property seekers say they’ve adjusted their search standards. The commonest change has been in searchers’ value ranges (13%), whereas 6% have modified the situation of their search and 4% have altered the variety of bedrooms of their potential properties. Some respondents deciding on “different” defined that they had determined to hire slightly than purchase.
Trying to the long run, opinions are combined on what is going to occur to rates of interest. 1 / 4 of property seekers anticipate charges to proceed to fall (26%), whereas simply over a 3rd (35%) imagine they’ll keep on the present degree. Lower than one in 5 (17%) anticipate charges to rise once more. Round 1 / 4 (23%) say they don’t know.
Sentiment Abstract
Whereas confidence within the pace of transactions stays robust amongst patrons, sellers and renters, patrons are additionally feeling optimistic about their capability to boost the funds wanted to buy their subsequent home.
Trying to present occasions, opinions are combined on what the way forward for property tax appears like, with property seekers cut up as as to whether the present system ought to be maintained or reformed. The yr’s rates of interest drops have affected the best way some are trying to find property, as many predict charges to remain on the present degree or drop additional.
We’ll proceed to watch shifts in sentiment and market exercise within the months forward and supply up to date insights in our subsequent version. Preserve studying for insights from OnTheMarket’s information and feedback from brokers across the nation on their experiences over the previous few months.
Insights from the OnTheMarket web site
Key phrases
Our key phrase search device helps property seekers refine their search based mostly on particular options they need of their subsequent house.
For patrons, out of doors house is a transparent precedence with gardens that includes in 31% of key phrase searches. Parking can be extremely wanted (17%) together with garages (12%) whereas freehold properties and rural properties atrract related ranges of curiosity (each 7%).
Within the rental market, gardens once more high the checklist, showing in 29% of key phrase searches, with parking as soon as once more shut behind at 21%). Renters, nevertheless, have further issues with 11% seek for “pets thought of”, 10% for “payments included” and seven% for “furnished”.
Property varieties
Filtering by property varieties stays on of essentially the most extensively used search choices.
Amongst patrons, indifferent homes are the most well-liked selection (28%), carefully adopted by bungalows (23%). Semi-detached homes make up an additional 17% of searches whereas flats account for 15%.
Renters, however, present a powerful choice for studios, which dominate 55% of filtered searches. Indifferent and semi-detached homes share related demand with 12% every, adopted by bungalows and terraced homes, each with 9% of filtered searches.
New directions
OnTheMarket has typically seen a progress in new listings in current months, growing by round 5% every month as much as August. Nonetheless, final month noticed a seasonal dip, with new instruction falling by 15%, a standard pattern through the summer season as many sellers delay shifting plans whereas they go on vacation or benefit from the climate at house.
Worth reductions
The proportion of properties with value reductions has remained comparatively steady in current months. In August, 11% of listings have been decreased, in contrast with 14% in each June and July. This consistency means that the small shifts following the top of the Stamp Obligation vacation are steadily returning to extra acquainted ranges.
Agent insights
“With the November Price range on the horizon and ongoing financial uncertainty, patrons stay cautious and value delicate. This yr now we have achieved file costs, each on a £ per sq. foot foundation and when it comes to actual values in sure roads, the place all properties have been turn-key.
“Many patrons are extremely knowledgeable, usually utilizing £ per sq. foot as a benchmark earlier than deciding which properties to view. Whereas some are ready to supply, persuading them to enhance their bids might be difficult, as they need reassurance that their buy will nonetheless characterize good worth after the Price range or in just a few years’ time.
“With inventory ranges throughout London remaining excessive, bridging the hole between asking value and achievable sale value has been key. Wise pricing not solely reduces time available on the market however may assist safe stronger outcomes. In reality, now we have achieved file costs for shoppers who adopted this strategy.
“Conveyancing is at the moment taking round 6–8 weeks. We strongly advocate that sellers instruct solicitors early and put together documentation upfront to keep away from delays, which solely add to purchaser uncertainty.”
“What we’re seeing throughout the market are targeted patrons eager to get offers over the road, with exchanges and new purchaser registration ranges on par with 2024, regardless of an unsure financial and political panorama. The current resolution by the Financial institution of England to carry rates of interest at 4% has demonstrated a concentrate on stability: a pause that permits the market to regulate steadily and with better confidence over the longer-term.
“While costs have adjusted in some native markets, others stay underpinned by excessive demand, creating a very regionalised image. Life-style-led strikes proceed to drive demand in areas like Tunbridge Wells, Chester and Colchester, the place long-term worth outweighs short-term volatility. Completions stay robust in commuter hubs like Sevenoaks and Hale, reflecting the resilience of micro-markets that supply connectivity, group and high quality of life. Whereas these decided to finish earlier than Christmas are already deep into their transactions, money patrons now have a helpful alternative, with a wide array of properties out there to them.
“Homemovers are more and more targeted on the tangible realities of as we speak’s housing panorama. Our current analysis revealed that of the 15% of over 55s who plan to downsize would accomplish that inside the subsequent yr if stamp obligation have been eliminated or decreased on their onward buy, reflective of pent-up demand and a doable wave of movers topic to the outcomes of the Autumn Price range.
“As we enter the ultimate quarter of the yr, the message is evident; patrons are dedicated however now extra discerning. The precedence for coverage makers have to be to supply additional stability that may breed confidence, gas transactions, and help homemovers on their journey.”
“After a surprisingly busy few months of transactional exercise in any respect ranges of the agricultural property company market, the drip feed of potential adjustments to the taxation of each housing and housing transactions has introduced a layer of warning into {the marketplace}.
“On the increased finish of the market – particularly round properties price in extra of £1.5m – there may be extra warning as the opportunity of introducing capital features tax to precept non-public residences has been rumoured to be introduced in November’s Price range.
“Nonetheless, the marketplace for properties price lower than £1.5m is standing up very nicely. Attainable reforms to stamp obligation are more likely to be unlock exercise amongst patrons, and our New Houses staff are additionally very busy, which bodes nicely for the way forward for home constructing and residential possession.”
Methodology
Between Friday 22 and Saturday 30 August, over 2,500 lively property seekers who’ve not too long ago signed up for property alerts or despatched a property enquiry at OnTheMarket participated in our survey. This group represents engaged people at the moment navigating the UK property market. Breaking respondents down into:
- 1331 (50%) are actively in search of a property to purchase
- 1345 (51%) have a property to promote
- 1571 (59%) are actively in search of a property to hire
The place totals don’t add as much as 100%, this is because of rounding.
Information on key phrases, property varieties, new directions and decreased properties is for June to September and is drawn from OnTheMarket’s information compiled from hundreds of property agent branches and housebuilders who checklist their properties with OnTheMarket each month.
The info for key phrases and property varieties is said to all searches which have used these filters and doesn’t embrace info referring to searches with out them.
For all enquiries, please contact Amelia Collins (acollins@onthemarket.com)
Earlier editions of the Property Sentiment Index, in addition to different stories might be discovered on our weblog.
