The level of real estate sales fell by a quarter in the first half of this year, which is described as a sign that the market has stopped.
The fast-buying company, the House Buyer Bureau, analyzed the Land Registry’s sales volume data, looking at the average number of monthly property transactions that took place between January and June 2022.
He then looked at how this level of market activity compares to the previous six months – July 2021 to December 2021.
The research shows an average of 61,651 homes sold in the UK on a monthly basis between January and June 2022, down 23.8% from the 80,958 sold per month in the previous six months.
The North East saw the biggest decline, with a 32.5% drop in transaction levels, while the North West also saw a notable decline, down 28.3%.
While all other regions have seen a drop of at least 20%, the London market has seen the average number of monthly transactions fall by just 8.4% over the past six months.
The research does not appear to take into account the stamp duty holiday which was still in place between July and October 2021.
Chris Hodgkinson, Managing Director of House Buyer Bureau, said: “We have suspected for some time that the market was beginning to lose momentum after such a sustained period of increased market activity.
“While there hasn’t been a noticeable drop in house prices yet, we’ve seen earlier signs that mortgage approvals are stuttering and we’re now starting to see that translate into lower transaction levels.
“This decline will only intensify in the future, as the increase in the cost of obtaining a mortgage continues to climb to some of the highest levels seen in years. With more buyers deterred to enter the market, sellers will begin to realize that they simply cannot expect to get the same price they would have during the dizzying heights of the pandemic market boom.
“As this pendulum swings, there is no doubt that house prices will start to decline and it is only a matter of time before that decline manifests itself.”
|The table shows the number of average monthly transactions over the past six months and the change from the previous six months|
|Location||Sales volumes – previous six months||Sales Volumes – Last Six Months||% change – sales volume|
|Yorkshire and the Humber||6,896||5,030||-27.1%|
|east of england||7,440||5,755||-22.6%|