Hesitant buyers push completions 40% below “normal conditions”

Hesitant buyers push completions 40% below “normal conditions”, according to the latest  figures from Landmark Information Group.

A mixture of buyer reluctance to take on high mortgage rates, the availability of home loans and inefficiencies in the homebuying process are stifling sales, research suggests.

New figures from property data firm Landmark Information Group for the second quarter of 2024 show listing volumes are averaging 6% higher than in the same period of 2019.

This suggests supply is the strongest it’s been in years. 

However, transactions are struggling to progress through to completions, reflecting the ongoing affordability issues driven by high interest rates, Landmark said.

Sold subject to contract (SSTC) levels are down 32% compared with the second quarter of 2019. 

Similarly, completion rates, while showing moderate growth in May, remain around 40% below where we’d expect from normal market conditions.  

Its analysis also highlighted a 19-week average time from offer to completion, which is an increase of 64% since 2007.

The firm is hopeful about the second half of the year though.

Simon Brown, chief executive of Landmark Information Group, said:

“Our data shows it is not a capacity issue, but anecdotes point to a mixture of consumer reticence to take on costly mortgages at current rates, mortgage availability and also we see inefficiencies in the homebuying process.

“Provided that economic stability improves, and systemic inefficiencies are addressed by the new Government, the data suggests that the market is poised for a potential upturn.

“A high level of listings, coupled with moderate growth in completion rates and the increasing availability of competitive mortgage deals, all point to a possible return to more dynamic conditions.”

Kindly shared by Estate Agent Today