Landmark Information Group’s Q3 2024 Property Trends Report has revealed that despite a surge in housing supply, economic and political uncertainty continues to put downward pressure on completion rates.
The report analysed the housing market from July to September 2024, showing that while listing volumes spiked to 6% higher than the benchmark year of 2019, completions fell to their lowest point, hitting 42% below 2019 levels.
Sold subject to contract (SSTC) volume remained relatively flat between Q2 2024 and Q3 2024, dipping only by 5%, with a 7% increase in September compared to July 2024.
Although this may suggest a slight post-election confidence bump, these figures trailed behind 2019 levels.
Affordability remained a critical barrier to returning completion rates to expected levels, with interest rates at 5% compared to 0.75% in 2019.
Scotland experienced a less significant impact on completion rates, with a 13% drop compared to 42% in England and Wales.
To meet the Government’s 70% homeownership target, Landmark Information Group said lessons could be drawn from Scotland’s more efficient home-moving market.
Simon Brown, CEO of Landmark Information Group, said: “Our Q3 trends data reflects the ongoing external economic and political turbulence causing affordability constraints and buyer caution, as home-movers pause ahead of the Budget to wait for more favourable interest rates.
“The strong level of supply is a positive indicator for the market, but without addressing the ongoing affordability challenges and the systemic inefficiencies in the transaction process, we will continue to see a gap between supply and completions.
“We are approaching a critical moment for the new Government, and this is a key opportunity for the new Housing Minister and industry stakeholders to work together to streamline the home-moving process and mobilise buyers as the market shows signs of recovery.”
