In the coming months, the property sector is predicted to remain relatively stable, as several emerging trends look set to buffer the impact of recent economic headwinds, on the key markers for market health.
One of these trends, is the potential relaxation of affordability tests carried out on new mortgage applications, which it is suggested, could boost buying power by 15-20%. In addition, base rates are expected to lower in the upcoming quarters, according to analysts, which will help to deliver a significant market uplift.
Currently, the surge in the number of homes for sale (up 12% from last year) has sufficed to bolster buyer choice and sales volumes, and even though this is helping keep property prices in check, there has still been a notable 1.6% increase in property values in the year to March 2025.
In the coming months, affordability will inevitably remain an ongoing concern, with higher-than-average rates and cost of living challenges still to contend with. The implications of these factors for market activity, might be compounded by the natural period of re-adjustment we are in, following the end of the stamp duty relief in March, coupled with seasonal factors.
Even so, market activity is expected to follow a steady trajectory, heading into the summer. This owes to the largely favourable buying/selling conditions created by lower swap rates and stress-testing for borrowing, coupled with a healthy stock of properties to choose from (15% more than a year ago).
It’s no wonder, in light of this, that sales numbers are up 5% on last year, and while house price inflation is expected to slow slightly, the spring selling season has provided enough evidence to indicate that a continuation of recent market trends, as we move into the mid to latter part of the year, is firmly within the realms of possibility.