Property supply has improved during the first quarter of 2023 following house price corrections and a settling of interest rates, according to Landmark Information Group.
However, the property data company has cautioned that consumers’ ability to buy remains a “crucial factor” in influencing the market trajectory.
Landmark’s newly released first quarter Residential Property Trends report suggests listings are strengthening and are only down 3% on the same period of 2019.
By March 2023, supply volumes exceeded those in March 2019 by 6%, according to the report.
Sold subject to contract (SSTC) volumes ended the quarter 22% down compared with the first quarter of 2019, while conveyancing search volumes for January this year are 38% down compared with January 2019.
SSTC volumes are recovering at a faster rate that search volumes, indicating a rising market, Landmark said.
The report said: “If this continues in the second quarter then the market will be in “touching distance” of 2019 volumes.
However, this contrasts with the continued subdued levels of mortgage valuations which reflect a shortage of buyer access to affordable mortgages, Landmark warns
Simon Brown, chief executive of Landmark Information Group, added: “As the housing market stabilises after the disruptions of last year, consumers’ ability to buy continues to determine market trajectory.
“While there is still strong appetite among movers, the availability of mortgages and cost-of-living pressures seem likely to play a significant role in shaping market conditions in the near-term. We see a recovery in property listings needing a similar level of mortgage availability for the market to overcome its recent corrections and adjustments.”
