27 Jul 2022
There are further signs this month that the supply shortage that has characterised the housing market since the start of the pandemic is slowly easing. Our analysis shows that the stock of property for sale has risen by more than 16% since the start of the year, from 228,000 in January to 265,000 this week. This represents an acceleration of the trend we reported back in April.
Up to now, many properties have been snapped up rapidly due to a backlog of pent-up demand from buyers, but recent data show that this demand is now easing off. The estate agents' organisation Propertymark said last week that the average number of viewings per property fell by 29% in June to 4.4: roughly in line with the pre-pandemic seasonal average. While the sales rate remains high – 33% of stock compared to a long-term average of 17% – Propertymark reported that more of its member agents reported sales below asking price in June than in March.
With the headline figure of inflation reaching 9.4% – the highest since 1982 – another rise in interest rates seems almost certain when the Bank of England meets next Thursday. A Reuters poll of economists found a fairly even split in predictions between a 0.25% increase and a 0.5% hike from the current rate of 1.25%. This in turn is increasing affordability concerns among lenders and may be behind the spate of downvaluations – where a mortgage survey comes up with a lower price than that agreed – which our property team has noticed recently.
As partners of the National Residential Landlords Association, we understand the importance of private rented property as part of the UK's housing stock, and we are working to make it easier for landlords to buy and sell property without causing disruption to tenants. This month, the NRLA has responded to the government's white paper on rental reform with five key asks. The first of these? "End the anti-landlord rhetoric." Find out what else the association is demanding here.
Our first webinar in association with the NRLA last month was a great success, with more than 400 people attending to hear more about the proposed new energy-efficiency rules for rented property.
Don't miss our next session, which takes place on Thursday 8 September and tackles When to sell tenanted property. Key points will include:
You can register here, and you don't need to be an NRLA member or a landlord to attend – there will be plenty of advice relevant to the wider property market.
Is there a topic you'd like us to cover in a future webinar or guide? Get in touch at firstname.lastname@example.org.
Have a great week!
Rob and the Movewise Team