Housing market remains in the doldrums

With new buyer enquiries stalling and last month’s jump in mortgage approvals proving to be a one-off, the housing market remains in the doldrums. On the one hand, it is somewhat reassuring that households’ finances look better than previously thought. But on the other hand, house prices are already very high and the expected rate hike in November will start to push up mortgage costs. Consequently, we expect house price growth to be stuck at low single-digit rates for the foreseeable future, while any recovery in transactions will likely be gradual.