According to Knight Frank, housing supply has eased since the main spring buying season, but buyers “still hesitate as economic risks continue to persist.”
According to real estate agents Knight Frank and Rightmove, the new list is more than five years above the five-year average last month.
Beyond that, industry sentiment has begun to be cancelled in the new year ahead of Prime Minister Rachel Reeves’ October budget, “This makes mortgage rates higher and confidence lower,” the UK said Tom Bill, a residential research agent.
But he noted that buyers have started to “be more cautious as they wait for news about better mortgage rates.”
According to Knight Frank, the number of new potential buyers registered in the UK in January was 12% below the five-year average.
Bill’s notes come after the Bank of England cut its base interest rate by 0.25% to 4.50% last week, and some industry observers say the move has been priced by mortgage lenders.
“When the outlook is so mixed, the buyer’s caution is understandable,” he said.
The agency noted a five-year Sonia swap rate for pricing fixed-rate mortgages of the same length, which was 3.8% last Thursday, up 3.4% from September.
“Last week’s [Bank of England] Cutting tax rates will provide a short-term boost to your sentiment, but mortgage costs are unlikely to drop when lenders operate with such a tight profit. ” Bill said.
He added that the central bank’s slowdown speed managed to “muddy waters” by increasing the “scattered ghosts.”
The bank cuts its November 2025 growth forecast from 1.5% to 0.75%, and predicts inflation will rise from its current 2.5% level to 3.7% in the third quarter of this year.
The homebuying market has a very active pocket, but this mood will be tested as the spring buying season approaches, which coincides with the end of a lower stamp duty threshold.
Knight Frank, a cavalier with the country business in James Cleland, said: “Demand is even more important in the family counties near London. As spring approaches, this usually spreads to other parts of the country, which is A positive signal for equality for everyone else in the next few months.”
But Bill pointed to the headwinds in the coming months.
He said: “Britain could still be caught in a potentially escalating trade war between the United States and the EU.
Bill added: “The key date will also be March 26, when the Prime Minister issued her spring statement, while the Office of Budget Responsibility issued a new growth forecast. Will she be forced to cut spending or raise taxes to restore financial headroom?
“The optimism in recent weeks is more attributed to the lack of bad news than the existence of good news.”
