Landmark Information Group Q3 Property Trends Report (England and Wales)

The Landmark Information Group have published their latest Q3 Property Trends Report (covering England and Wales).

Landmark’s newly released Q3 Residential Property Trends report offers a comprehensive analysis of property data from the third quarter of the year, examining the entire residential property transaction chain – making it the most extensive cross-market analysis of the property sector in England and Wales.

Despite indications that inflation and interest rates may be heading in a more positive direction, the data for Q3 shows a subdued market as the usual post-summer uplift failed to materialise.

Continued market uncertainty and affordability issues had a continued impact on Sold Subject to Contract (SSTC) levels in the last quarter, with September seeing the biggest negative variation to the pre-COVID benchmark of 2019 so far this year at 49% down vs 2019 levels.

Similarly, this muted cross-market picture can be seen at valuation stage, with valuation volumes failing to improve (38% down on 2019 levels in September) – further demonstrating the affordability constraints home-movers are facing.

However, despite the overall picture of a flatter market, supply remains relatively healthy as we head into Q4. Listings were 3% higher than 2019 benchmark levels in September.

Simon Brown, CEO of Landmark Information Group, said:

“Amidst the ongoing challenges of the economic landscape, our data paints a picture of an unusually muted yet stable market.

“The post-summer bounce back we would usually expect to provide a boost going into Q4 hasn’t yet happened, leaving the market in a remarkably flat position.

“While this stabilisation means an end to the volatility of previous quarters, it also leaves us in unchartered waters, with few in the industry remembering such a prolonged period of stagnation.

“However, we are operating in a resilient market, meaning growth will eventually return.

“For now, we wait to see what the external landscape brings in Q4.”

Key findings from the report:

- Cross-market activity
  - Listing volumes in Q3 ‘23 have remained relatively strong with both August reporting a 2% increase and September showing a 3% increase on the same months in ‘19.
  - SSTC volumes in Q3 ’23 tracked 36% below Q3‘19.
  - Search order volumes in Q3 ’23 recovered slightly over the quarter but were still 36% down on Q3 ‘19 volumes in September.
  - Completions levels in Q3 ‘23 were 4% higher vs Q2 ‘23 but 35% down compared to Q3 ‘19.
- Listings data
  - Listing levels crept over the 2019 benchmark in both August and September, with August reporting a 2% increase and September a 3% uplift on the same period in ‘19.
  - Supply is consistent with Q2 ‘23 levels, 1% up over the last 6 months.
- SSTC
  - SSTC volumes in Q3 ’23 tracked 36% below levels seen in Q3‘19.
  - Although SSTC volumes rose by 6% in August ‘23 on the month prior, this was a reflection of an unusual drop in SSTC levels seen during August ‘19.
- Property Search to SSTC
  - Supply is in a relatively positive position with levels 3% lower in July ’23 vs ’19 and 3% higher in Sept ’23 vs ’19.
  - However, demand is struggling with volumes 38% lower in July ’23 vs ‘19 and 39% lower in Sept ’23 vs ‘19.
- Mortgage valuations to approvals
  - Higher borrowing costs have cooled demand, resulting in a decline in both mortgage volumes and approvals this quarter.