The start of the new school term is expected to significantly disrupt the autumn property market, particularly affecting homebuyers with school-aged children. Research indicates that many parents will struggle to balance property viewings with their new schedules, which could slow down transactions and impact mortgage applications.
TL;DR: 88% of homebuyers with school-aged children plan to reduce property viewings during the initial weeks of the school term; this will likely delay mortgage processes and transactions.
How Will School Commitments Affect Property Viewings?
According to a survey conducted by House Buyer Bureau, a staggering 88% of homebuyers with children expect to be less inclined to attend property viewings as the new school year begins. Childcare arrangements are anticipated to be the most significant barrier, with 24% of respondents citing it as a major issue. Additionally, 22% noted that school drop-offs and pick-ups would hinder their ability to search for properties.
Other factors contributing to this disruption include after-school clubs and activities (13%), returning to work after the summer holidays (11%), and the need to purchase school essentials (11%). This shift in priorities means that parents will have limited time to dedicate to house hunting, particularly during the first few weeks of term.
What Are Homebuyers Doing Instead?
Given the time constraints, nearly four in five buyers (79%) plan to increase their reliance on online resources, such as listings, virtual tours, and video viewings. This trend reflects a growing preference for digital solutions that allow homebuyers to explore properties without the need for in-person visits. Furthermore, 80% of respondents indicated they might delay viewings for properties of interest due to school-related commitments.
As a result, the traditional viewing process may shift, with many buyers opting to conduct their initial assessments online before committing to physical visits. This change could lead to a more competitive online market as buyers adapt to the new realities of their schedules.
What This Means for Mortgage Applications
The anticipated slowdown in property viewings and searches is likely to have a cascading effect on mortgage applications. With 92% of respondents expecting school-related commitments to slow their purchasing process, the timeline for securing a mortgage could extend significantly. Three-quarters of buyers (75%) believe it will take over a month after the school term begins before they can fully focus on their property search again.
This delay could affect not only individual buyers but also the broader market, as fewer transactions may lead to a slowdown in mortgage approvals and completions. Brokers and lenders should prepare for a potential dip in activity as families navigate their new routines.
Frequently Asked Questions
How can homebuyers adapt to the back-to-school disruption?
Homebuyers can adapt by utilising online resources such as virtual tours and video viewings to continue their property search without needing to attend in-person viewings. This can save time and allow them to balance their new schedules more effectively.
What impact will this disruption have on mortgage timelines?
The disruption is likely to extend mortgage timelines, as 92% of buyers expect school commitments to slow down their purchasing process. This could lead to delays in mortgage applications and approvals.