With the summer selling season officially underway, the housing market is expected to enter a period of recalibration, with many of the key indicators of market health suggesting that harmony between affordability, rates and house prices may be beginning to be restored.
Currently, the UK has the most homes for sale in 7 years – 11% higher than this time last year. As well, 8 in 10 homes (24 million across the UK) have risen in value by up to 50% in just 5 years. As a result, homeowners are benefiting from greater refinancing opportunities, and general improvements in wherewithal for onward moves.
Compounding this reasonably positive picture of market health is the current data suggesting that not only did completions rise 30% more in Q1 than the same period in 2024, but that the predicted slump that was assumed would follow this tax-driven peak was largely avoided. In contrast to early forecasts, sellers and buyers appear to be both optimistic and engaged, with greater pricing realism, high stock levels and recent interest rate cuts no doubt contributing to this resilience.
That said, these are arguably the most price-sensitive conditions the market has witnessed in years, owing to the disparity between homes for sale and buyer demand, which is only up 3%, but also on account of the enduring affordability challenges, which remain a core constraint.
There is, however, a wide margin for variability across hyperlocal markets, and authorities are generally united in the consensus that the market is ‘in waiting’ as opposed to in decline.
Looking ahead, and given the potential for regional variation, it is important for prospective home-movers to take into account how unique area dynamics might interact to influence home values and market activity.
In summary, with a continuation of competitive pricing strategies, and a resolution in the elongated property chains of late (which advancements in the digitisation of this process might resolve) it is probably not a case of if market momentum will return, but when.
For more information on the Maidenhead property market please contact a member of the Braxton team on 01628 674234 or email property@braxtons.co.uk