December's UK housing market slumped
December's UK housing market slumped
According to HMRC (UK Revenue and Customs), the number of residential transactions fell to 108,960 in December, down 3% from November and 1% from December 2021.
Even though the real estate market typically slows down in December, Emma Cox, managing director of real estate at Shawbrook, predicts that prices will continue to fall in the first half of the year, so she hopes that the new year will bring a renewed burst of activity as buyers look to secure deals.
Although mortgage rates are still higher than they were a year ago, they have started to decline, providing the market new hope for the coming year.
Buyers should keep their wits about them when there are hints of price growth since competition among investors, many of whom will be wanting to add to portfolios this year, is likely to be tough.
Insufficient Supply
Meanwhile, Jeremy Leaf, a real estate agent in north London, said that buyers were being held back by a shortage of inventory.
"Rising mortgage rates clouded the property market in the last months of the year and may still hold back transaction numbers in the early parts of 2023," said Nicky Stevenson, managing director of estate agent business Fine & Country.
The housing market appears to be adjusting to the new normal, nevertheless.
Buyers "have gotten used to a higher-rate landscape and are coming back to the market," as a result of the hope of finding a good deal on a property.
Investments in non-family properties
As for non-residential transactions, HMRC reported 10,810 in December, which is 5% lower than the same month a year ago but 9% higher than November.
Both commercial and agricultural land are considered non-residential. Buying six or more homes in one transaction would also be classified as a commercial purchase.
HMRC has stated that the data are preliminary and will be revised in the upcoming months.
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