Date Published 14 July 2023
House hunter inquiries, sales and property prices slipped back further in June as mortgage rates increased, according to surveyors. A net balance of around 45 per cent of property professionals reported buyer inquiries falling rather than rising, this has deteriorated from a balance of 20 per cent seen in May.
Details have emerged recently of an extraordinary ‘stress test' created by the Bank of England. The test was to see if they would be able to survive a catastrophic hit to the economy. The scenario created by the Bank of England would have house prices falling by 31 per cent, the unemployment rate increasing to 8.5 per cent and inflation rising to 17 per cent. All banks that were tested passed, the banks included were Barclays, Lloyds, HSBC, NatWest, Santander UK, Standard Chartered, Nationwide Building Society and Virgin Money.
A net balance of 34 per cent of professionals also reported newly agreed sales falling rather than rising, which was also a weaker figure than the balance of eight per cent observing this in May. This was the most downbeat sales figure since December 2022, when a net balance of 38 per cent of professionals saw sales falling. A net balance of 46 per cent of professionals reported house prices falling rather than rising, further deteriorating from a balance of 30 per cent in May.
Looking across to the rental market, a net balance of 40 per cent of professionals saw an increase in tenant demand. With rising demand still being met with a lack of available properties to let, a net balance of 53 per cent of professionals expect rental prices to increase over the near-term.
