Estate agents Foxtons (LSE:FOXT) Group PLC will delve into the state of the UK’s housing market in its upcoming third-quarter results on Thursday, 26 October.
Given the full effects of hiked interest rates are yet to drip through to the UK mortgage market, with the majority of homeowners yet to be hit with higher renewal costs, Foxtons (LSE:FOXT)’ own interim guidance looks set to stand.
That is, the rental market seems to have provided the company with more growth than the selling market this year, especially given its position as London’s largest letting agent.
“Little change [is] expected to the ongoing supply and demand imbalance, which will continue to underpin rents,” the group said in July.
Hargreaves Lansdown analysts echoed the sentiment, adding that there would likely be little relief for renters as prices look set to continue upward over the next year.
“Every passing month brings fewer rental properties and more tenants competing for them,” finance expert Sarah Coles said on Wednesday. “The upshot of it all will be higher rents.”
In sales, ongoing challenges look set to remain, Foxtons (LSE:FOXT) continued, with buying and selling volumes set to remain muted by higher interest rates for the remainder of the year.
What may provide a glimmer of hope is August’s lower-than-expected inflation reading, which - following a pause in base rate hikes - has prompted lenders to cut mortgage rates at speed through September and into October.
Foxtons had discussed such an event, quoting: “Should inflation moderate, buyer demand may rebound strongly, underpinned by ongoing demand for London residential property.”
However, whether this has led to a boost in the number of market transactions in recent months remains to be seen.
Coles suggested poor conditions in the sales market would likely persist into the new year though, with lower rates than those seen during the summer merely a silver lining given their long-term growth.