New data from HM Land Registry (HMLR) has confirmed the number of residential property transactions in the UK dropped in December.
The Land Registry said the provisional non-seasonally adjusted estimate of the number of UK residential transactions in December 2022 is 108,960.
This marks a 3% month-on-month fall from November 2022. It’s also a 1% drop from December 2021, suggesting there was perhaps a wobble in confidence and stability around the time of the mini-budget, which was to some extent expected.
However, encouragement can be taken from the size of the dip in that it’s nothing extensive: the pipeline of transactions does not seem to be on the precipice of calamity.
Indeed, the number of transactions in December 2022 – 108,960 – is above figures seen in five of the seven years pre-pandemic.
Adam Oldfield, chief revenue officer at Phoebus Software, said it was an “encouraging sign” that “despite the knock in confidence in September, the housing market continues to move along, although at a slower pace”.
Oldfield added:
“There are signs that confidence is returning and, while fuel prices continue to fall and inflation steadies, might we see a traditional post-Christmas pick up in transactions in the first quarter?”
“We may have to wait a little longer to see the full impact of last year’s market volatility, and the subsequent slowdown in mortgage applications late last year, trickle through to the property completion data,” said Clare Beardmore, Director, Legal & General Mortgage Club, continuing:
“Despite this, today’s figures show transaction levels are still healthy, though they are below some of the very high levels we’ve seen in the last 12 months.
Our market is not without its challenges. However, there are plenty of reasons to be positive for the year ahead. Average mortgage rates have begun to fall and lenders are keen to add to their loan books in a competitive lending market, which is all good news for consumers.”
Simon McCulloch, Chief Commercial & Growth Officer at Smoove said:
“These latest statistics show the impact of rising mortgage rates and the typically quieter holiday period. However, all things considered, these events have only caused transactions to remain largely flat year-on-year, as opposed to the significant drop that many could have expected. This highlights the strength and fluidity of the UK housing market. As the hangover of the mini budget fades and the market begins to adapt to higher rates, we should begin to see some of the market’s former dynamism begin to return.”
