Residential property market confidence has staged a significant comeback, with new research from Savills revealing that the commitment to move home remains resilient despite a backdrop of persistent economic and political uncertainty.
A survey of 1,100 prospective buyers and sellers shows a net balance of +24% now planning to move within the next year. This figure marks a stark improvement from the same period last year, when a net balance of 23% of respondents indicated they would rather stay put than list their properties.
However, the path to completion remains complicated. While demand is undoubtedly trending upward, prospective movers are increasingly wary of the external climate. Domestic political change was cited as the primary driver of hesitation, affecting 31% of respondents. This was followed by a persistent lack of quality housing stock (17%) and fears surrounding potential future tax reforms (15%).
“While there remains a degree of uncertainty around the wider economy and housing market, there is still a strong undercurrent of demand,” said Frances McDonald, director of research at Savills. “This is particularly evident among needs-based buyers, whose decisions are driven by life stage and lifestyle priorities rather than the broader market conditions.”
Regional performance shows that London leads the charge, recording the strongest commitment to move with a net balance of +31%, significantly outpacing the regional average of +24%. The market is also being propelled by those looking to relocate, who reported a robust net commitment balance of +38%.
In contrast, the top end of the market—properties valued at £2 million and above—remains cautious. High-net-worth buyers are responding to the discretionary nature of the luxury market as well as the introduction of the High Value Council Tax Surcharge.
“The increase in mortgage costs has caused some households to pause and consider their options more carefully, while the prospect of policy changes leading up to the Autumn Budget is holding back movers in higher price bands,” McDonald added. “Greater clarity on tax direction in the coming months should provide the market with the confidence required to increase transactional activity.”
For those still committed to moving, location remains the non-negotiable priority. Over half of all respondents (58%) identified location as the one factor they are least willing to compromise on, while 40% cited proximity to family as their most important consideration.
Despite the current hurdles, the appetite for high-quality, “turnkey” homes remains sharp. Savills notes that while there is an abundance of total housing stock, the supply of high-quality homes is dwindling as listings slow. Consequently, buyers are acting with increased decisiveness when the right property hits the market, underscoring a market where the “right” home remains a high-value commodity.
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