The housing market has continued to stagnate throughout Q2, even with stronger supply, research from Landmark Information Group has revealed.
Landmark’s Q2 Residential Property Trends report analysed property data from the second quarter of the year, examining the residential property transaction chain.
This report followed the new Government’s focus on boosting homeownership – highlighting that despite strong supply, transactions are still being hindered by inefficiencies in the home buying and selling process.
The data showed that listing volumes averaged 6% higher than in Q2 2019, used as the benchmark year, meaning that supply was the strongest for several years.
However, transactions struggled to progress through to completions, reflecting the ongoing affordability issues driven by high interest rates.
Sold Subject to Contract (SSTC) levels were down 32% compared to Q2 2019.
Similarly, completion rates, while showing moderate growth in May, remained around 40% below that of normal market conditions.
Despite the challenges, the data suggested 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, pointed 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.”
