Housing Insight Report: July 2024

June marks the beginning of the Great British Summer and a seasonal change in the activity of home buyers. Key demand metrics, including the number of prospective buyer registrations and the number of viewings, have reduced slightly as consumer attention turns to the holiday season. In the residential lettings sector supply and demand remains imbalanced, with tenant demand increasing in June and stock levels marginally decreasing.

In the summer budget of 2015, Chancellor George Osbourne, announced his intention to limit the ability of landlords to claim tax relief on finance costs including mortgage fees and mortgage interest payments. Despite the significance of Section 24, it is not clear how landlords have been impacted or of their future intentions. The English PRS is in a state of flux and this research is important to identify and address the challenges.

While both sectors remain resilient, there is much that the next government can do to support buyers, renters such as improving the home buying/renting process and professionalisation of the sector via the regulation of agents. More broadly there is a need for a review of property taxes to make changes which stimulate supply and demand.

Although challenges remain, key economic indicators give cause for optimism. GDP is trending upward, and inflation is edging closer to the Bank of England’s target. Member sentiment varies by sector, but there is notable positivity in the Land and Yards and Industrial sectors. Supply and demand imbalances remain, most notably in the Pubs and Restaurants sector, which continues to be impacted by changing trends.