Property demand remains high but prices set to cool, says OnTheMarket chief
Property portal OnTheMarket said demand for homes remained strong but warned prices could fall as cost of living pressures and mortgage rate rises stifled buying power.
OnTheMarket boss Jason Tebb told the Standard: “Six months ago there was a clear supply and demand market at play with hundreds of people looking at one property, but now there’s a surge of properties coming into the market.
“As mortgage affordability makes things more challenging there may be a cooling off of prices and in some areas a reduction in house prices…[but] I’m not hearing there are swathes of people looking to make low offers and trying to pick up bargains.
“There’s likely still some unfulfilled demand from customers who couldn’t find anything…we are still in a scenario where it is an aspiration for people to own their own home,” he said.
Three quarters of active buyers in the UK were confident they would purchase a property in the next three months, according to OnTheMarket’s property sentiment data.
The London-based business reported a 38% drop in operating profit to £1.3 million in the year to July 2022, while sales grew 14% to £17 million.
Tebb said the firm’s earnings would meet market expectations, as the company’s performance was not linked to house price activity because of its contracts with estate agents and house builders.
OnTheMarket shares climbed 1.4% to 75p. Its stock has fallen 40% since the start of the year. Founded in 2015, the firm made its debut on London’s AIM market in 2018. It’s backed by a number of London-based estate agents including Chestertons, Knight Frank and Savills.
