Twindig Housing Market Index (HMI) 26 March 22
The Twindig Housing Market Index fell by 0.8% this week from 79.1 to 78.5 and it probably would have gone up if it hadn't been for that meddling Secretary of State...
Michael Gove's comments this week about the UK having a cartel of volume housebuilders, spooked investor confidence this week. The Twindig Housing Market Index may only have fallen by 0.8% overall, but if we dig into the data we can see that investor confidence fell in housebuilders by 6.5% during the week that Mr Gove made 'cartel' the collective noun for housebuilders.
Investors fear that the pendulum is swinging against housebuilders and that after almost ten years of help to buy feast there will be a period of famine where the UK Government uses stock not carrots to achieve policy objectives.
Aside from the war of words between the UK Government and the UK Housebuilders, last week was a good week for the housing market. The HMRC reported that housing transactions had increased by 4.4% in February and house prices nudged up 0.35% (£967).
The cost of living crisis is yet to impact the level of housing market activity, but it might start to be tempering prices, a case of - if you've gotta move, you move, but not at any price.
Next week the Bank of England will release the mortgage approval data for February and the Nationwide will release its latest regional house price data.