UK house sales fall to pre-pandemic levels in January

Acute inventory shortages have limited deal making.

According to Oldypak Capital LP real estate 2022 report, the volume of property transactions in the UK has returned to pre-pandemic levels. This was due to previous sales stimulus, less favourable economic conditions and a severe inventory shortage.

Oldypak LP
Report by Oldypak LP real estate agency

Even more recently there have been a record number of houses for sale in the UK. Prices for luxury homes near London have risen the most in five years. Meanwhile, Londoners spent a record amount on housing outside the capital in 2021.

 

Details. An estimated 85,520 home sales were recorded nationwide last month, down 12.6% on January 2021. This is down 22.2% on December and almost on par with January 2020, when the number of transactions reached 83,840.

 

“After a year that fell short of expectations, the month-on-month figures for transactions completed in January 2022 show that the market is slightly weakened by the continued imbalance in inventory and high levels of demand,” said Jackson-Stops chairman Nick Leaming.

 

“However, we are starting to see more and more supply coming on to the market and we expect to enter the traditionally buoyant spring market as it warms up. And as early as March we will see an increase in both inventory levels and associated sales activity. Despite the higher cost of living, mortgage rates are still attractive, so we expect buyers to remain active.

 

Forecasts. The current imbalance between supply and demand is not only affecting transactions, but is also driving up property prices across the country. However, growth is likely to be held back by rising interest rates and a surge in the cost of living, market experts believe.

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