Residential property sales in England and Wales were down by 12% in the last quarter
Residential property sales in England and Wales saw a 12% decline over the last quarter while sales agreed were down by 15%, Street.co.uk’s latest market report found.
Across the country, the most substantial decrease in sales agreed was seen in the East Midlands, which was closely followed by the South East.
The state of residential property sales in Q3
Size of properties played a role in the decline in sales agreed as more modest drops were seen in one- and two-bedroom properties in contrast to larger houses that had four or five bedrooms.
It was suggested that buying power within the South, where the price of houses is the highest, appeared to be most affected by higher mortgage rates.
“As budgets are squeezed, mortgage costs rise and savings diminish, buyers in high-value regions face greater challenges. In contrast, lower-value housing markets in regions like the North East and North West are faring better under these conditions, where buyer’s budgets can go further,” explained Heather Staff, co-founder of Street Group.
With the Bank of England maintaining the base rate at 5.25%, Staff expects that lenders will reduce rates to remain competitive and so she remains optimistic about sales for Q4.
“The effects aren’t likely to be immediate and seasonality will likely dictate the direction of sales agreed for the rest of the year, but we might see a rise in new listings as optimistic sellers look towards home moving in the New Year,” she said.
In Q4, sales agreed are expected to continue to be slow, but the stable performance seen within the past few months was forecast to be 15% below the five-year average, yet finishing above Q4 2022.
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