Almost seven out of 10 properties listed in the first quarter of 2023 have been sold, although sales are down 7.5% compared to the same period four years ago, research from TwentyCI reveals.

Its latest Property and Homemover Report says Q1 2023 saw 269,000 residential sales, although new instructions are down on the quarter.

UPWARD TREND?

Sales agreed and exchanges are also lower, but based on March activity, the property market could be on an upward trend.

Fall-throughs, price changes and withdrawals have all increased, but remain low considering the unprecedented coincidence of economic and geo-political shocks.

Property Sales Agreed across the whole of the UK were on average 7.5% lower in Q1 2023, compared to Q1 2019.

The research also reveals that the average asking price across the UK remained stable at £420k – an increase of 24% compared to 2019.

Meanwhile all regions have increased over the period, but not all have benefitted equally, with gains varying between 11.8% in Inner London to 32% in Wales.

And despite a fall in Instructions, almost all regions in England and Wales have three or more months of residential stock to sell and levels are now only 9% away from historical norms.

The property market has demonstrated a robust performance against significant and determined headwinds.”

Colin Bradshaw, TwentyCI Chief Executive, says: “Our Q1 2023 report provides a comparison with 2019 which is widely considered to be the last period in which normal market conditions operated.

“The intervening period is peppered with quantum shocks including the rollercoaster of the pandemic; the fiscal policy changes effected through the Stamp Duty holiday; monetary policy pushing up interest rates to tackle inflation and the short, but damaging tenure of Liz Truss as Prime Minister.

“Many media commentators would have us believe the property market is in free-fall.

“Whilst the level of transactions and price increases is not matching the volumes or inflation seen in the last three years, a re-calibration was always likely.

“In reality the property market has demonstrated a robust performance against significant and determined headwinds.”

DOOMSDAY SCENARIOS

And he adds: “Whilst doomsday scenarios can’t be ruled out, it seems there is room for that old phrase – cautious optimism.

“As energy prices ease and interest rates and inflation look set to be near peaks or trending downwards, stable or upside scenarios have certainly started to look more credible.”