Twindig housing Market Index (HMI) - 17 Sep 2022

The Twindig Housing Market Index stood still this week at 72.9 in what was a fascinating week for the UK housing market. The Land Registry reported annual house price inflation at its highest level for 20 years and record results reported by housebuilders Redrow and Gleeson, DIY chain Wickes and robust results from The Property Franchise Group (one of the largest estate agents in the country). 

The Land Registry reported this week that annual house price inflation in July was 15.5% almost a 20-year high. The year-on-year growth was partly flattered by a post-stamp duty holiday drop in house prices in July 2022, but it still shows that even with mortgage rates and living costs rising there is a significant imbalance between the demand for homes and the supply of homes for sale. 

Redrow delivered record results which surpassed its pre-COVID levels for both revenue and underlying profits. However, Redrow did caution that with rising inflation and higher interest rates housing market activity has moderated in recent weeks, returning to more normal levels.

Housebuilder Gleeson also reported record results this week which underpins the demand for affordable homes across the UK and believes that it is well positioned to deliver further profitable growth in the year ahead

The Property Franchise Group, one of the UK's largest estate agency groups whose brands include Hunters and Martin & Co, reported half-year results this week. It has been encouraged by the levels of trading in July and August and remains confident that it can navigate the challenging macro-economic environment.

The DIY / home improvement chain Wickes also reported record first-half results this week and reported that demand has recently softened in the DIY market following a period of unprecedented demand during the pandemic lockdowns.