31 August 2023
If you are covering July’s UK monthly property transaction statistics, please see the following comment from Charlotte Nixon, mortgage expert at Quilter:
“The provisional seasonally adjusted figures for UK residential transactions in July 2023 show a significant drop of 16% in comparison to July 2022 and only a minor increment of 1% from June 2023 during what should be a typically busy time for purchases.
“Continuing economic pressure and lingering high inflation makes any hopes of achieving anything like the same level of property transactions to a couple of years ago a slim possibility in the near future. While we can hopefully anticipate a tapering of inflationary pressures in the coming months, the weight of escalating mortgage rates continues to hamper transactions. As aspiring homeowners grapple with the increasing financial burdens of property ownership, it becomes even more daunting to make a move on the property ladder. This lack of first time buyers glues the whole market up. The Bank of England's recent decisions, including previous rate hikes, are magnifying these challenges. As lenders adjust their terms, we might witness an even sharper rise if there are further monetary policy shifts.
“Current mortgage rates, having experienced their own set of fluctuations but are settling somewhat. The housing market thrives on certainty and if rates can achieve some long term sense of normalcy rather than the significant spikes we have been seeing in recent months then this will help with future transactions even if rates do remain elevated. With house prices having cooled slightly in response to waning demand, the trend might continue with sellers becoming more flexible in their pricing to attract potential buyers. In such volatile times, it's ever more crucial to engage with a seasoned mortgage adviser to guide your decision making in this challenging financial landscape.”
