A market in waiting: poised for recovery, but reliant on rates, reform and confidence
This edition of The Housing Brief reflects on a market where activity is currently driven by motivated buyers, with wider activity held back by elevated borrowing costs, stretched affordability, tax barriers and political uncertainty.
The report covers the key property market sectors and explores the following main topics:
- Sales: higher borrowing costs and uncertainty are keeping many discretionary movers on the sidelines, while needs-based purchases continue to drive activity.
- Lettings: early signs are that the Renters’ Rights Act has started to affect landlord and tenant behaviour, but does little to address the chronic undersupply of available rental properties.
- First-time buyer profile: our double-page spread of visual infographics tracks the shifting profile of today’s first-time buyer.
- Mortgages: more flexible lending rules have increased borrowing capacity for some first-time buyers, but affordability challenges persist.
- Policy: Stamp duty remains a major drag on mobility, but replacing it with an annual property or land tax could create difficult trade-offs for homeowners and policymakers alike.
While recovery will depend on the relevant barriers falling, lower and more predictable borrowing costs and a measured trajectory for policy reform show that some of the ingredients are already in place.
The full report can be downloaded here.