Property transactions - ONS

ended 20. April 2022

At 09:30 tomorrow morning, the Office for National Statistics is publishing data about the volume of residential property transactions in March 22. Few Qs:

  • In your experience, have property transactions tailed off a bit in March and April (or 2022 as a whole)?
  • Is the rising cost of living set to lower the number of property transactions as people become nervous about buying in the current climate?
  • Is the property market going to go spectacularly tits up as rates rise, inflation bites and the economy collapses as people spend less - or will the lack of supply save the day?

Answers on a postcard, etc…. 

3 responses from the Newspage community

Star Quote
"It's been a slow start overall to 2022, with transactions being limited by the sheer lack of stock and people staying indoors during the winter months. On top of that, the stamp duty holiday was in force a year ago so that will have skewed the data. However, the past few weeks have seen an increase in new instructions and buyers seem to have become more active again. As the weather improves, so does the property market by and large. There is still limited stock and that is hampering transaction levels. As ever, properties for sale at the right value sell very quickly. Despite the worrying global backdrop and inflation coupled with a slowing economy domestically, I am not seeing as much nervousness as some would make you think. I believe the next quarter will show a strong transactional market as the spring and early summer are often a key time to buy and sell homes."
"There's still plenty of demand from buyers, but it's mixed in with a nervousness about increasing mortgage rates, and potentially falling house prices. It's not a popular view, but we really do need UK property prices to fall in real terms. Imagine how much stronger the economy would be, if we didn't need to spend so much of our disposable income on mortgages and rent. Businesses would be able to charge less for goods and services, and consumers would have more spare cash to pay for them. And young people would finally have the chance to get onto the housing ladder without signing up for a lifetime of debt servitude. That it's come to this is a national disgrace, frankly."
"The pool of demand is still deep, but the current is weakening with fewer people registering their interest in purchasing a property. Make no mistake, the great readjustment will soon be upon us. Already the oversupply and overpricing of self-catered holiday homes is becoming apparent. With swathes of availability across Airbnb and rental income plummeting, additional stock will flood the market as those buy-to-let mortgages fail to stack up, or home owners start defaulting on mortgage repayments."