New data shows the slump in transactions across the UK - and may trigger opportunities for aggressive investors seeking to take advantage of a falling market.
Bulk-purchase company House Buyer Bureau analysed the level of monthly transactions seen across Britain since the Bank of England made the first of its 13 consecutive base rate hikes in December 2021, and how market activity levels have changed both in terms of the monthly total seen, and the average monthly change.
The research shows that across Britain there were just 43,209 transactions in February 2023, no fewer than 45.2 per cent less than in December 2021. It says the decline really started to kick in this year, as sales volumes in January (44,635) and February 2023 (43,209) were 27.9 and 37.0 per cent lower than the same months in 2022.
As a result, the average monthly level of transactions seen since December 2021 has declined at a rate of 3.4 per cent per month - but in reality with much of that in recent months.
Wales has seen the biggest reduction in market activity, with total monthly sales falling by 51.5 per cent as only 2,001 properties changed hands in February 2023, versus 4,122 in December 2021. Similarly there was a particularly strong decline in the East of England (down 48.1 per cent) and East Midlands (down 47.3 per cent).
Scotland has seen the smallest reduction in transaction levels, however, the 5,365 homes sold in February 2023 still sits 39.9 per cent below the level seen in December 2021.
A House Buyer Bureau spokesperson says: “The gloom is starting to set in across the UK, as higher mortgage rates serve to blunt people’s ambitions to buy. While some regions have fared worse than others, it’s clear that every corner of the market is feeling the effects of the current climate, as the perfect cocktail of high energy costs, high inflation and rising mortgage costs impacts affordability and confidence.
“In the current environment the only possible winners are cash buyers, because - faced with less competition from mortgaged homebuyers - they are in a good position to haggle for a favourable purchase price.
“For the rest of us, here’s hoping the Bank’s repeated base rate hikes fulfil their purpose and push inflation back near its two per cent target. Until that happens it's difficult to predict how high the base rate - and therefore mortgage rates - could climb.”
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I have noticed 2 things in the last 3-6 months, most of the properties which can on in March are still for sale, and hardly anything new is coming on 🫤 I can see some estate agents going bust, there are no rental’s also to give them any income 😱😱🆘🆘
Bradley 50% of properties that agents sell fail to complete
Yes they get to ''sale agreed'' then all goes wrong
I seen one all newly done up selling last year for £800k but fell through and 2 more times now have fallen through again @ £650k. This one is worth the money every thing done brand new, kitchen,bathroom, wiring , heating, insulation, EPC C, its not the property at fault it’s the buyers finance. He’s a builder who bought to improve not a landlord I think he is on a hiding to nothing.
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