New data from conveyancing distributor conveybuddy suggests the purchase market remains in robust health – despite growing commentary around a wider slowdown in housing activity.
Analysis of instruction volumes received during the first 10 working days of April, May and June shows purchase-related instructions have risen steadily throughout the quarter, increasing by 37% since April.
June purchase activity was 15% higher than May and 37% above April levels, indicating continued buyer demand and transaction flow despite ongoing economic uncertainty.
The figures contrast with trends seen in the remortgage market, where activity remains below the elevated levels recorded earlier this year. Remortgage instructions fell by 12% in May compared with April, before recovering slightly in June, up 6% month-on-month. However, June volumes remained 7% below April levels.
STENGTHENING ACTIVITY
According to conveybuddy, this reflects a market normalising after a surge of activity in March, when brokers rushed to secure deals for borrowers ahead of lender repricing and product withdrawals triggered by global market volatility linked to the conflict in Iran.
Survey activity also continued to strengthen, providing a further indication of purchase market resilience. Survey instructions increased by 12% in May compared with April and were up 33% in June versus May, leaving activity 49% higher than April levels.
The company believes the figures paint a picture of a market that remains active, with purchases progressing through the system even as affordability challenges and economic uncertainty continue to weigh on consumer confidence.
RESILIENT MARKET
Harpal Singh (main picture, inset), Chief Executive Officer at conveybuddy, says: “Over the last few weeks there has been a lot of commentary suggesting the purchase market is struggling, but that is not what we are seeing from our own instruction data coming through the conveybuddy platform.
“Our transactional activity has increased in each of the first 10 days of the last three months and June has been particularly strong.
“If anything, the figures suggest the purchase market is proving more resilient than many people might think.”
REMORTGAGE BLIP
He adds: “Part of this confusion appears to come from what is happening in the remortgage space where we saw a huge spike in mortgage business brought forward into March as brokers acted quickly for clients in response to lender pricing changes and product withdrawals. It was always likely that activity would settle down afterwards.
“When you compare what is happening today with those exceptional levels of remortgage activity, it can create the impression the wider market has slowed dramatically.
“However, purchases are continuing to move through the system and our data suggests activity remains healthy.”
