21 February 2023
If you are covering the UK monthly property transactions statistics, please see the following comment from Karen Noye mortgage expert at Quilter:
"Monthly property transactions in December show the beginning of a housing market starting to seize up. However, the number of residential transactions is still up on pre-pandemic numbers but only marginally. The provisional seasonally adjusted estimate of the number of UK residential transactions in December 2022 is 101,920, 1% higher than December 2021 but 3% lower than November 2022.
"The pace of transactions will serve as a canary down the mine for house prices and if the number of transactions drop significantly it is likely that house prices will go with them as supply outstrips demand.
"These statistics are the first that take into account the fallout from the mini-budget and therefore the huge rise in mortgage rates post event. However, since then rates have significantly dropped after their peaks towards the back end of next year which might help keep transactions at least stable as people continue to cautiously enter the market feeling the worst is now behind them.
"Although the cost-of-living crisis is certainly hurting people’s finances, some of the worries about a huge house price crash may have been averted and while transactions and house prices are falling, they may avoid anything akin to 2008. However, while the outlook is certainly more predictable than it was back in December it is still going to be financially difficult for millions and this will undoubtedly have an impact on the number of people choosing to move house."
