Landmark Information Group Q4 Property Trends Report (England and Wales)

Landmark’s Q4 property trends report shows a market on pause as movers wait for certainty amid soaring mortgage rates.

Landmark Information Group’s latest market data shows how buyer concerns over affordability filtered through the transaction pipeline into Q4, as a combination of inflation and mortgage availability impacted planned home-moves.

Landmark’s newly released Q4 Property Trends report analyses property data for the year up until Q4 2022 across the entire residential property transaction chain, representing the most comprehensive cross-market analysis of the property sector in England and Wales.

The report shows that despite continued appetite to move from both buyers and sellers, the cost-of-living crisis had a marked impact on the market as planned home-moves were put on pause in response to soaring interest rates and reduced mortgage options.

Landmarks data shows that the number of mortgage valuations fell sharply from September onwards as mortgage products were pulled from the market in response to Autumn’s fiscal event – hampering movers’ ability to progress with transactions. Similarly, the data points to subdued SSTC and search levels throughout Q4 – both down 35% in December vs December 2019 as consumers waited for mortgage rates to stabilise.

Whilst the start of Q4 indicated strong supply, with listings hovering at or slightly below 2019 levels, the lack of sales eventually began to have an impact in December as home buyers waited for 2023 to bring more economic stability.

Simon Brown, CEO, Landmark Information Group, said:

“We can clearly see that the cost-of-living crisis cannot be ignored as a key influence on the UK’s property market in 2022.

“For many home-movers, while there is still strong appetite to move, there are indications that most are waiting for the economic headwinds to calm before making any concrete decisions.

“However, while many moves are on hold, transaction times have continued to creep up, with our latest data showing it now takes 133 days on average to complete a home move.

“This highlights how the UK’s home-moving process is still in dire need of modernisation to make sure it works for movers and industry alike.”

Key findings from the report:

- Cross-market activity
  - Despite market uncertainty, listings in Q4 remained strong at just 6% less than the same quarter in 2019
  - SSTC and search volumes were subdued however, likely due to the combined impact of affordability, inflation, mortgage availability and interest rates.
  - The pipeline is active with transactions still flowing towards completion, despite reports of high fall-through rates.
- Listings data relative to 2019
  - Although Q4 followed the recent trend of a market returning to normal supply levels, the lack of sales eventually began to have an impact in December.
  - A drop in December may indicate home buyers are waiting for the new year to take action. We may see a return to more normal supply levels in January.
- SSTC
  - In comparison with 2019, SSTC has been mildly subdued throughout 2022. However, volumes dropped more steadily from September onwards as affordability concerns hit.
  - Where the expectation was for a high reduction in activity this quarter compared to 2019, it is reassuring that volumes appear to be as high as they are.
- Property Search to SSTC
  - The knock-on effects of lower mortgage approval rates and affordability concerns are seen in Q4 with lower volumes of SSTC and searches ordered.