Twindig Housing Market Index (HMI)

The Twindig Housing Market Index increased by 0.7 points (+0.9%) this week to 71.8 its highest level since 6 March 2020.

Investor confidence increased most within the estate agency sector up 6% reflecting improving housing transaction data and growing levels of housing market activity.

A strong set of results and strong order book lifted investor confidence in Persimmon but did not materially lift confidence in the housebuilding sector overall.

Investor confidence in UK lenders fell by almost 3%. At the end of last week Metrobank ‘temporarily’ withdrew all residential mortgage products at 60%, 85% and 90% Loan-to-Value as demand outstripped their ability to supply.

There continues to be a big gap between investor confidence in the UK mortgage lenders and the rest of the UK residential market (estate agents, housebuilders and portals). The overwhelming majority of housing transactions involve a mortgage so this disconnect is important. The big question is will the optimism of home buyers and home sellers positively lift the lenders or will lender's caution negatively impact the recovering UK Housing market?