East of England sees highest drop in property sales and SSTC

Residential property sales in England and Wales are down by 12% over the last quarter while sales agreed are down by 15%, research from Street.co.uk reveals.

Over the last two years, there has been sharp decline in total sales agreed (27%), with January – September 2023 recording 741,148, while in the same period of 2021 the sales agreed figure was 1,021,997.

EAST MIDLANDS

The latest Street.co.uk Market Report also reveals that the decline in property sales is affecting the East Midlands more than any other area, followed closely by the South East.

In August, Greater London saw a 6% decline in sales agreed and a 16% drop in listings.

The North East and North West regions have shown the smallest decline in sales agreed, with reductions of only 12% and 13%, respectively.

The data also shows a more modest decline in sales agreed for one and two-bedroom properties compared to larger residences and hints at a reduced demand for larger and typically higher-priced properties.

Heather Staff (main picture), Co-Founder of Street.co.uk, says: “The regions experiencing the most significant drops in sold properties are also the regions with the highest average house prices – highlighting greater market stability in areas with a higher number of lower-priced properties.”

PRONOUNCED EFFECT

And she adds: “Higher mortgage rates appear to have a more pronounced effect on buying power in the South, where house prices are highest. As budgets are squeezed, mortgage costs rise and savings diminish, buyers in high-value regions face greater challenges.

“In contrast, lower-value housing markets in regions like the North East and North West are faring better under these conditions, where buyer’s budgets can go further.

“The recent decision to maintain the base rate at 5.25% should provide some added comfort as we move into the final quarter for agents and home movers alike.”