Property listing volumes are averaging 6% higher than in Q2 2019 (used as the benchmark year), meaning that supply is the strongest it has been in years. However, transactions are struggling to progress through to completions, reflecting the ongoing affordability issues driven by high interest rates, new figures show.
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 Sold Subject to Contract (SSTC) levels are down 32% compared to Q2 2019. Similarly, completion rates, while showing moderate growth in May, remain circa 40% below where we’d expect from 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.
Simon Brown, CEO of Landmark Information Group, said: “Our Q2 trends data paints a clear picture of the scale of the challenge the new government inherits. Whilst 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.”
Brown continued: “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.”
