Market Outlook – Sales: Price Stability Offers Certainty to Buyers

• Political stability is a welcome boost for housing market sentiment. So too is the new government’s pro-growth agenda and ambitious targets for housebuilding.
• Improved sentiment was reflected immediately in housebuilder share prices which rose as the election result was announced.
• The recovery in the sales market has continued to solidify, although with a little less momentum while we waited for political clarity and as we still wait for confirmation on the interest rate cycle.
• Stable prices offer buyers and sellers welcome certainty. Whilst transaction levels remain low; leading indicators for activity are stronger. Indeed, mortgage approvals are now almost back to their long-term trend.
• Affordability metrics are encouraging too, underpinned by Improvements in mortgage rates and continued strong earnings growth.

Source: HM Treasury Forecasts, Savills, Knight Frank, JLL, CBRE. July 2024