30 June 2023
If you are covering the UK monthly property transactions statistics, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The provisional seasonally adjusted figures for UK residential transactions in May 2023 indicate a significant decline of 27% compared to the same period in the preceding year, and a modest decrease of 3% relative to April 2023.
“There was hope that the fiscal landscape was beginning to stabilise but following stickier than hoped for inflation a resurgence to the robust market we have come to expect is, disappointingly, is still not in sight.
“Whilst the sting of inflation should hopefully soon start to recede, mounting mortgage rates persist in curtailing transactions, as climbing the property ladder or transitioning homes becomes progressively more challenging. The Bank of England's decision to lift its base rate to 5% in June, we can only compound problems. Lenders are increasing their mortgage rates, which are expected to soar even more should the Bank tighten monetary policy again.
“Average mortgage rates have experienced substantial volatility and now surpass 6% and this could inflict further harm on demand, driving transactions even lower. A gradual deflation in house prices over recent months mirrors the diminishing demand. We foresee a steady decrease over the following months as sellers vie for buyers. Given the property market's inherent unpredictability, it is prudent to consult a professional mortgage adviser to ensure a decision that aligns with your personal financial situation.”
