Twindig Housing Market Index (HMI) - 14 August 21
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.
The RICS July survey released this week pointed to a post Stamp Duty Holiday slow down, no surprises there, and the falling of both demand and supply should keep house prices firm and underpinned.
The biggest shock this week perhaps came from Purplebricks, which announced that it was moving away from the self-employed model to the employed one. This could be a case of IR35 small print, but it is a significant change with some commentators suggesting that the model is similar to Goldilocks and the three bears. It doesn't work in a hot market (too few selles) and it doesn't work in a cold market (too few buyers) and the window of optimal operating temperature is quite narrow Has the disruptor been disrupted by the market it is trying to disrupt?