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Stuck in limbo

July saw the second consecutive monthly rise in new buyer enquiries and house purchase mortgage approvals, as Brexit uncertainty briefly eased. (See Chart 1.) But with house prices very high and economic uncertainty set to intensify once more, we expect the recovery to be short lived. By contrast, the imbalance between lettings demand and supply has grown, meaning the outlook for rents is stronger. We expect rental growth to rise across the board, and in particular, for rents in London to surge over the next few years.

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