According to data from HM Revenue and Customs (HMRC), the number of homes sold in September was down by a third (37%) compared to the same month a year ago.
Across the UK, there were 103,930 transactions in September, largely unchanged compared to August 2022.
The year-on-year comparison has been distorted by several large spikes in home sales that occurred last year, as buyers rushed to complete transactions before the stamp duty holiday was phased out.
There were significant peaks in transactions during March, June and September 2021.
The report said: “UK residential transactions have been stable in recent months, but remain above pre-coronavirus levels.”
Activity levels seen at the end of 2020 and through 2021 were the exception, not the rule
Mortgage rates have risen sharply in recent weeks amid the fallout from a smaller budget.
The Bank of England base rate increase is also raising mortgage rates – and further base rate increases are expected.
Some home buyers who already have a mortgage may go ahead, while others may choose to sit it out for a while to see what happens to mortgage rates and home prices in the coming months.
Nick Leaming, president of estate agent Jackson-Stops, said: “The reality is that any change in the (Conservative Party) leadership could lead to a change in policy and direction for ministerial positions, leading to an even greater sense of ambiguity in the market.” Will be born. Have to answer.
“In the immediate term, the housing market remains stable. Transaction levels remain strong month-on-month.”
He added: “Any annual comparison will certainly present a different picture, but it is important to note that activity levels at the end of 2020 and throughout 2021 were the exception, not the rule.
“Buyer demand remains unsatisfactory in many areas of the country, while properties at the top and mid ends of the market continue to perform well across the national Jackson-stop network, particularly in Chichester, Newmarket, Northampton and Woking.”
Those coming to the end of these deals, either now or in the near future, are in for a payment shock.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Most homeowners are insulated from rising interest rates because they are fixed rates.
“Those who come to the end of these deals, either now or in the near future, are in for a payment shock as the fixed rates are priced much higher than the deals that borrowers had originally taken out.
“A base rate tracker with no early repayment charges may be a better option until fixed rate pricing is in place.
“Those who are already mid-transaction are willing to go ahead with a mortgage offer secured sometime back, which is likely to sound particularly attractive now.”
Jason Tebb, chief executive officer of property search website OnTheMarket.com, said: “Our own data indicates that sentiment was positive in September and 79% of sellers are confident they can complete the sale in the next three months.
“We wait to see how further political events and the appointment of another prime minister will impact buyer and seller sentiment, which has so far proved remarkably strong.
“As interest rates and the cost of living continue to rise, buyers have less purchasing power so new properties coming to market must be more realistically priced.”
Mike Scott, chief analyst at estate agency Yopa, said: “These figures relate to sales that were agreed upon in the prior year, but they show that the housing market continued to show surprising resilience in the face of rising cost of living and other economic conditions. Pressure.”
Credit: www.standard.co.uk /