Houselungo 15 August 21

Published 15th of August, 2021

A lungo length look at this week's housing market news

RICS Survey Three down, one up

The Royal Institution of Chartered Surveyors (RICS) released their UK residential survey for July today

What they said

New buyer enquiries and newly agreed sales dip over the month

The volume of fresh listings coming onto the sales market remains in decline

Lack of supply still underpinning house price growth

Twindig Take

Following the first step down in the Stamp Duty Holiday benefit, it is of no huge surprise that housing market activity in July was lower than that seen in June as homebuyers rushed to complete their house purchases before the 30 June to take advantage of the £500,000 Stamp Duty Holiday limit before it reduced to £250,000 on 1 July. However, which of the three key housing market indicators were down and which one was up?

Help to Buy continues to help

Picture credit: James Feaver

The UK Government released the Q1 2021 Help to Buy statistics this morning.

What they said

15,341 properties were bought with help to buy in Q1 2021

This is an increase of 61% from Q1 2020

The total value of capital deployed in Help to Buy so far is £20.1bn

Twindig take

Help to Buy is helping. The 15,341 households helped in Q1 2021 takes the total helped to 328,506. During Q1 2021 the total value of equity loans was £1,158 million supporting the purchase of more than £5bn worth of residential property.

Bellway firm foundations for the future

National housebuilder Bellway issued its financial year end trading update on Tuesday this week

What they said

Strong recovery in housing revenue up 41% to over £3.1 billion

Record investment in land

Good underlying housing demand across the country

Twindig take

Further evidence from Bellway today that the housing market recovery is built on firm foundations. Sales rates in FY2021 were ahead of FY2020 and, more importantly, ahead of FY2019. Forward sales are at record levels, and Bellway has added a record number of plots to the landbank. Bellway had a strong financial year last year; it is having a strong financial year this year and it is looking very likely that next year will be even stronger.

Twindig Housing Market Index

The Twindig Housing Market Index nudged up by just 0.1% this week, its smallest increase since 22 May 2020. It was a quiet week for housing market news, but the news was positive. Bellway issued a strong trading update and is investing heavily in its future, which we take as a sign of confidence regarding the medium-long term outlook for the UK housing market. RICS data was mixed, but good for house prices, but the story of the week was has Purplebricks been disrupted by the market it is trying to disrupt?

Housing Hailey

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