2023-04-25-莱坊-UK_Residential_Market_Update_April_2023_2页_375kb

UK Residential Market Update Summary for April 2023

The UK residential market shows a mixed but largely stable trend as the year progresses. Mortgage approval volumes have increased slightly for six months, reaching a low of 43,500, still below pre-2019 levels. House price data is inconsistent: Nationwide reports seven consecutive monthly declines, with a -3.1% annual contraction, while Halifax indicates a 0.8% monthly price increase. Sentiment surveys suggest moderation in future buying demand, with IHS Markit's index rising slightly to 55.6, indicating improved expectations.

Sales activity remains subdued, with low new instructions and buyer interest. In London, primes show stability but slow growth compared to the pandemic period. The letting market continues to face tight supply, with demand exceeding new instructions in England and Wales by a significant margin, though quarterly surveys show improvement. Landlords grapple with rising mortgage, maintenance, and energy efficiency costs, facing a potential £17.9bn upgrade bill.

Overall activity levels are moderate, supported by lender expectations of increased demand in the near term, but challenges like inflation and regulatory pressures persist.