Will spring see a green shoots of recovery for UK house sales?
Yesterday’s news of the 18% drop in annual house sales for February by the HMRC, coupled with increasing stability in UK mortgage rates, has prompted speculation on the state of the housing market.
With 77 years of experience in house sales, lettings, mortgages, and property management and 47 branches in the South of England, Andrews has significant expertise in the market.
Carl Howard, CEO of Andrews Property Group is cautiously optimistic, and his comments have been featured in a slew of media titles — from The Independent to the Gloucestershire Gazette.
“Off the back of a long period of cheap funding, dating back to 2008, a change in the mood music was always likely to spark uncertainty and affect sales volumes before prices,” said Howard.
“While the year-on-year seasonally adjusted decrease of 18% in completed sales for February doesn’t paint a rosy picture, market angst about 2023 transactions feels overdone. The 4% monthly decline reflects a filtering through of the cooling effect of high interest rates, coupled with the soaring lending rates that characterised the Liz Truss era. However, a spring bounce is on the cards, and it is more likely we will see a ‘return to the mean’ following three unusual years during the pandemic.”
Founded in 1946 and with significant expertise in property sales, lettings, management finances make sure you follow Andrews for up to date insights into the property market.
“The spectre of the autumn budget, which hung over the end of 2022 and created a short-term brake on the market, leaving many transactions in limbo, seems to have finally lifted. Sentiment is slowly improving, and, despite some regional variation, there is a sense that deals are being driven by demand rather than necessity.
“Buyers who were hunkering down at the end of 2022 are now steadily returning to the market, encouraged by settled mortgage rates, cooling inflation and the prospect of striking a bargain. Sellers are playing their part here too, with more prepared to be flexible on price to get deals over the line.
“Although new data from Rightmove shows that prices have risen 0.8% in March, the decline in consumers’ spending power, coupled with the potential for recession later this year, means many people will still be keeping a watching brief on this market from the sidelines. The next six months will be pivotal for the market.”
Founded in 1946 and with significant expertise in property sales, lettings, management finances make sure you follow Andrews for up to date insights into the property market.
