"While the property sector is incredibly fragmented in nature, we’ve seen a worryingly consistent performance across the board when it comes to the reduction in market activity so far this year"
The latest research from estate and lettings agent, Barrows and Forrester, analysed sold price data from the Land Registry looking at the level of property transactions to have been completed between January and May of this year, the total estimated market value of these transactions, and how this level of market activity compares to the five months prior (August to December 2022).
The research shows that as well as the -54% drop in transactions compared to the same time period prior, the average selling price of these properties also fell by -7% resulting in the estimated total market value of homes sold so far in 2023 falling to £52.4bn -57% below the total market value of homes sold during the previous five months.
It’s a similar story across the nation, with both transactions and total market values of homes sold falling by more than 50% across every area of England and Wales.
The London market has seen the greatest decline in transaction volumes, with just 15,638 homes sold so far this year, a drop of -57%. The East of England (-56%) and South East (-56%) have also seen some of the largest reductions in transaction levels.
In terms of the total market value of homes sold, it’s the East of England that has seen the largest decline at -59%, with the South East (-58%) and London (-58%) again placing within the top three.
Despite seeing one of the largest levels of decline in market activity, the South East still ranks top in terms of total homes sold so far this year, with 24,210 transactions completed since the start of January. The North West (19,275) and South West (16,246) also rank within the top three in this respect.
The South East is also home to the most valuable property market, with an estimated £11.2bn worth of property sold so far this year. Similarly, just over £11bn worth of homes have sold across London, with the East of England completing the top three (£6.3bn).
The North East sits bottom of the table, although the region has still seen some £1.3bn worth of property sold since the start of the year.
Managing Director of Barrows and Forrester, James Forrester, commented: “While the property sector is incredibly fragmented in nature, we’ve seen a worryingly consistent performance across the board when it comes to the reduction in market activity so far this year.
"Not only has there been a drop in the average price a home is selling for across every region, but we’ve also seen transaction levels more than half compared to the back end of last year.
"As a result, the total market value of homes sold has taken a significant hit and this demonstrates the reversal in fortunes that sellers now face, with fewer buyers fighting it out for available stock and doing so at a lower price point than previously.”
