"Our latest report demonstrates a property market that has shown resilience but remains hamstrung by an economy that has parked the industry in a stable but static state"
- Simon Brown - Landmark Information Group
Landmark’s newly released Residential Property Trends report covering Q4 2024, examining the entire residential property transaction chain, has highlighted a year of relative stability compared to 2023 but underscores a static market still lagging behind pre-pandemic levels as transaction volumes, albeit stable across the year, consistently tracked well below the 2019 benchmark.
However, continued strong supply throughout the year illustrates the ongoing desire from consumers to move – suggesting potential for economic growth and improved market activity should economic conditions improve.
The data shows that in Q4 2024, Sold Subject to Contract rates were stagnant, consistently tracking 33% down on average in 2019 levels for the same quarter. Whilst the market remained stable, challenging economic conditions and a shifting regulatory landscape constrained demand from progressing through the transaction pipeline.
Completion volumes were 37% down in Q4 2024 compared to Q4 2019, having been consistently 40% down on average throughout 2024 when compared to the 2019 benchmark.
At the same time, supply volumes in Q4 were healthy with listings up 8% against 2019 levels. A consistently strong supply since the start of 2024 indicates strong seller appetite but, due to affordability challenges impacting demand, fewer listings are making it through the pipeline. Overall, transaction activity was consistently low throughout the year.
The high levels of supply and constricted demand demonstrate strong potential for the market to rapidly accelerate and generate economic traction if affordability and macroeconomic challenges ease this year.
The end of Q4 saw a small uptick in volumes, likely due to increased activity ahead of the Stamp Duty Land Tax (SDLT) reversals expected in April this year. SSTC and completion volumes were up 4% and 5% respectively from Q3 2024 to Q4 2024, compared to the same period in 2019. This suggests an artificial bubble of activity in the pipeline before the tax change. However, this reform could also create future budgetary barriers for home movers, continuing the static trend.
“Our latest report demonstrates a property market that has shown resilience but remains hamstrung by an economy that has parked the industry in a stable but static state," said Simon Brown, CEO, Landmark Information Group.
"The current economy is not conducive to buying and selling. However, the desire to move is clearly there. This speaks of the property industry's potential to bounce back strongly and quickly if we can find a way to remove the economic barriers and streamline the home buying and selling process," he added.
Brown concluded, "Entering 2025, our focus will remain firmly on supporting the latter. We will continue providing insights and innovations that support the industry in navigating this complex landscape. Our goal is to support our partners and stakeholders in finding opportunities to drive momentum and create a more efficient transaction process.”
