But data suggests market is poised for a potential upturn
Despite strong supply, transactions are still hindered by inefficiencies in the home buying and selling process, according to Landmark’s newly released Q2 Residential Property Trends report.
The report, which offers a detailed analysis of property data from the second quarter, also found that ongoing affordability issues are preventing many from progressing with planned home moves.
The data shows that listing volumes are averaging 6% higher than in Q2 2019, indicating that supply is the strongest it has been in years. However, transactions are struggling to progress to completions due to high interest rates.
Sold subject to contract (SSTC) levels are down 32% compared to Q2 2019. Similarly, completion rates, while showing moderate growth in May, remain about 40% below expected levels for normal market conditions.
Despite the challenges, the data suggests that the market is poised for a potential upturn when the broader economic picture stabilises.
The high level of listings, coupled with moderate growth in completion rates and the increasing availability of competitive mortgage deals, points to a possible return to more dynamic conditions in the latter half of 2024, provided that economic stability improves, and systemic inefficiencies are addressed by the new government.
“Our Q2 trends data paints a clear picture of the scale of the challenge the new government inherits,” said Simon Brown (pictured), chief executive of Landmark Information Group. “While housing supply is the strongest it has been in years, inefficiencies within the home-moving process, combined with affordability constraints for buyers, mean that transaction levels are not where they should be. This is frustrating for home-movers and detrimental to the property market as a whole.
“By putting data at the heart of the home-buying and selling process, we can streamline transactions, reduce delays, and ultimately revitalise the property market.
“With the property market contributing to 20% of UK economic activity, addressing these inefficiencies presents an enormous untapped opportunity. The Labour government’s commitment to building 1.5 million homes is commendable, but unless we also focus on improving the transaction process and ensuring economic stability, it could take years to see the full benefits.”
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