DAVY VIEW

This quarter’s MyHome report shows a slight moderation in asking price inflation to 10.9% in Q2 2022 from 12.3% in Q1. The out-turn is broadly in line with our forecast for a further slowdown in H2 2022 towards our forecast for 7% Residential Property Price Index (RPPI) inflation by year-end. Housing market conditions are also overcoming the disruption from the COVID-19 pandemic, with vendors returning to the market and transactions in 2022 now 6% above pre-pandemic 2019 levels.