The Brief: Homebuyers are receiving discounts as agreed prices dropped in October — the first time in 18 months, according to Zoopla. The property portal company recorded a 2.4% increase in the average discount for the week ending November 19, with the most reductions observed in southern England. Demand since the mini-Budget, however, remains very low at 44% while fall-throughs occurred in 1/15 homes sold by agents.
Why It Matters: Buyers who cannot secure a mortgage are more prone to walking away from purchases. It may be moving towards a buyer’s market, but many first-time buyers will be priced out unless they have enough cash to make a deposit, or have secured a mortgage already.
Finanze Foresights: Fall-through rates in the country are mainly driven by the inability to get a mortgage, a higher offer being given by a competing buyer, or a delay in the conveyancing process amongst others. But the UK market can rely on older millennial buyers who are in their late 30s or early 40s that are more than motivated to push through with the deals and can afford to pay higher property costs. For younger millennials, affordability can quash their hopes of getting a mortgage because they are more likely to become overstretched given their lower savings or net income.
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