New data from Knight Frank has been released to help understand what to expect from the property market this autumn. August saw a dip in property viewings and demand, yet buyer demand is predicted to pick up throughout the autumn and the rest of 2022.
Industry experts have also raised concern about how the market and economy will hold up with Liz Truss recently appointed new prime minister.
Changes to the market
Restrictions around travelling abroad prevented international trips throughout the majority of last year. Knight Frank’s statistics show that due to holidays taking place in August, there was a 16% drop in viewings versus the five-year average in August.
Despite these changes, offers accepted were up 33% last month versus the five-year average, meaning transaction volumes are set to remain high in the coming months.
Charles Davenport, head of the Elmbridge region at Knight Frank, explains: “The last 24 hours have felt like a return to May or June regarding the number of new instructions we have launched. Buyers have kept in touch while away on holiday, and there’s a huge appetite to buy, as many people have an eye on locking in a mortgage rate ahead of any further increases in the cost of borrowing,”
The supply level is growing as buyers hope to capitalise on rising prices and act before mortgage rates rise. This will keep downwards pressure on prices over the upcoming months.
Since the pandemic, there has been a higher interest in country living. The stamp duty holiday also helped increase the momentum of property purchases too. The shortage of housing stock could also be a consequence of fewer people choosing to list their own homes.
Nonetheless, the number of homes available for sale in the country market is increasing. According to Knight Frank, this was -25% in the 12 months to August compared to the previous year. Overall, this is the narrowest gap since October.
With Liz Truss now prime minister, changes to the housing market are likely to be reflected by the cost of living and soaring energy prices. However, the £100bn+ energy support package could boost buyer sentiment in the short term.
House price growth in the housing market is expected to continue if unemployment remains low and inflation is contained.