Despite signs of recovery at the end of Q1, property transactions were disrupted in Q2 by the continued fluctuation in interest rates and mortgage availability and affordability, research from Landmark Information Group has revealed.
Landmark’s Residential Property Trends report analysed data from the second quarter of the year, encompassing the entire residential transaction chain.
Supply continued to grow, with listings 12% higher in June 2023 than the 2019 benchmark, but 23% fewer transactions failed to progress to the sold subject to contract (SSTC) phase, compared with June 2019.
As a result, completions were at their lowest level all year, dropping in Q2 to 13% below Q1 2023, and 39% lower than Q2 2019.
Mortgage valuation volumes were 35% lower in Q2 2023 compared with the same period in 2019.
Simon Brown, CEO of Landmark Information Group, said: “Despite the promising signs of market stabilisation we were seeing at the end of the first quarter, our data clearly shows how the broader economic instability was impacting the transaction pipeline into Q2 of this year.
“Progressed demand has remained weak, likely due to ongoing high interest rates and subsequent restricted mortgage availability and affordability – and this has had an inevitable knock-on effect across the rest of the transaction milestones.”
He added: “Activity will only flow through the pipeline once the market finds a balance between interest rates, inflation and the cost of housing.
“When that time comes, speeding up property transactions will be essential to a swift and sustained recovery.”
