Property listings are up 6% on average compared to the second quarter of 2019 (used as the base year), meaning supply is the strongest in years. But new data shows transactions are slowing to complete, reflecting continuing affordability issues caused by high interest rates.
Landmark's newly released Q2 Residential Property Trends Report provides a comprehensive analysis of property data from the second quarter of the year, examining the entire residential property transaction chain. The data reveals that Sale-Subject-Contract (SSTC) levels are down 32% compared to Q2 2019. Similarly, completion rates, while showing a modest increase in May, remain approximately 40% below levels expected given normal market conditions.
Despite these challenges, data indicates the market has the potential to recover once the overall economy stabilizes. High listing volume, a modest increase in payment completion rates, and an increase in competitive mortgage transactions suggest the market could return to more robust conditions in the second half of 2024 if economic stability improves and the new administration addresses systemic inefficiencies.
Simon Brown, CEO of Landmark Information Group, said: “The second quarter trend data clearly shows the scale of the challenge the new administration will inherit. Housing supply is the strongest it has been in years, but inefficiencies in the home-moving process, combined with constraints on buyers' ability to purchase a home, have meant transaction levels are not as high as hoped. This is frustrating for home-moving buyers and has a negative impact on 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 revitalize the property market.”
Mr Brown added: “The property market accounts for 20% of the UK's economic activity and addressing these inefficiencies represents a huge untapped opportunity. While the Labour government's promise to build 1.5 million homes is to be commended,
We are also focused on improving trade processes and ensuring economic stability, although the benefits may take years to be fully realized.”