While the property market started to return to pre-pandemic conditions in Q3, the latest Landmark Information Group report reveals early signs of turbulence in Q4 following cross-market reactions to September’s fiscal event.

The report shows steady levels of activity and a continued return to pre-pandemic market conditions – that started to become apparent in Q2 – with listings above 2019 benchmark levels for two consecutive months (August and September) for the first time in a year. 

However, Landmark says this does not seem to be filtering through to completions, which are down 12% in the third quarter this year, compared to 2019. 

The report highlights that the market is not yet seeing signs of the impending fall in demand that has been suggested will follow the current economic uncertainty, with demand still stable at the end of the quarter. 

Supply and demand also became more closely matched across the third quarter of the year, with supply up 5% on September 2019 levels at the end of the quarter. 

However, early Q4 data suggests conveyancing and lending processes will come under pressure in the next quarter, facing current concerns over mortgage availability and affordability. 

The newly released report also shows potential signs of the cost-of-living crisis starting to impact consumer confidence, with Q3 sold subject to contract down 2% on last quarter.   

Landmark Information Group chief executive Simon Brown says: “Whilst Q3 property market conditions show continued return to pre-pandemic levels, they are likely only the ‘calm before the storm’ – with the tail end of the quarter showing signs of headwinds yet to hit.” 

“The fragmented property transactions pipeline will continue to come under pressure, faced with continued interest rate movement, lending pressures, and an expected drop in demand in early Q4.” 

“Despite this, the positive increase in supply levels during Q3 could signal a potential reversal of the restricted supply we have seen during the past year. But only Q4 data will be able to tell the full story, as current instability is likely to derail this trend.”