The Q3 Residential Property Trends report from Landmark indicates a subdued property market in England and Wales, even with a stable supply.
The expected post-summer surge was absent, despite indications of positive movements in inflation and interest rates.
Economic uncertainties and affordability issues weighed heavily on the market. Sold Subject to Contract (SSTC) levels in September presented a sharp decline, being 49% down from the 2019 benchmark.
Valuation volumes also mirrored this downtrend, down by 38% compared to 2019, emphasizing the affordability challenges potential home buyers are facing.
However, the supply side has shown resilience. Listings in September were 3% higher than 2019 figures.
Simon Brown, CEO of Landmark Information Group, said: “Our data paints a picture of an unusually muted yet stable market. The typical post-summer boost hasn’t occurred, leaving the market in a flat position.
“This stabilisation suggests an end to the previous volatility, but we are now navigating uncharted waters. The market’s resilience suggests that growth will eventually return, but for now, we’re waiting to see the trends of Q4.”
Further findings from the report show that listing volumes in Q3 2023 had a modest increase with August and September reporting 2% and 3% hikes, respectively, when compared to 2019. SSTC volumes for the same quarter were down by 36% compared to Q3 2019.
Search order volumes were 36% less than September 2019, and completion levels were up by 4% from Q2 2023 but down 35% versus Q3 2019. Supply for Q2 2023 showed a consistent level, marking a 1% growth over the past six months.
Lastly, there has been a noted decline in both mortgage volumes and approvals this quarter, attributed to higher borrowing costs.
