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Looking to speak to housing market expert on a serious decline in house sales in 2023 compared to 2022

Journalist: Oliver Price, MailOnline

ended 01. February 2024

I have looked at government data and I believe that house sales in England and Wales have halved in 2023 compared to 2022.

Is this a sign of a collapse in the housing market?

7 responses from the Newspage community

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Editor
Michelle Lawson
Director at Lawson Financial
There are no signs of a 'collapse' . Business was down, people didn't move as much last year as interest rates shot through the roof, inflation was at a high and the economy was in dissarray. December 's figures showed a natural drop due to the focus on Christmas and is norotriously slow. Lots of green shoots at the start of 2024 as enquiries are up massively. Nationwide's January housing data shows signs of recovery, business has improved due to falling mortgage rates, inflation is going down. The problem with statistics is you can make them what you want them to be. If you want to compare this to the amount of property transactions for the week of 26th December to 2nd January you could say that property sales were virtually nil. We have to be careful to sort the wheat from the chaff and not focus on the misled 'doom'.
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Ken James
Director at Contractor Mortgage Services
The collapse of the property market is something that many investors and new buyers maybe looking for, but as anyone who has been around for long enough will tell you investment in bricks and mortar tends to stand the test of time.
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Robert Timm
Managing Director at Sunland Mortgages
Whilst the numbers are concerned, and unsurprising to anyone working in the industry, I don't believe it constitutes a collapse. It's driven primarily by a perfect storm of a huge spike in interest rates, with many hoping it to be temporary in nature, as well as house prices being high with few wanting to buy at a peak.

The data from January 2024 is extremely encouraging, with both brokers and estate agents noting record Januarys in both sales and activity. Hopefully, with interest rates reducing, this is the bounceback the industry needs after a tough 18 months.
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Sophie Pollard
Director at MyHaus Brighton
The housing market of 2023 really faced the aftermath of the pandemic rush. With higher mortgage rates and an overall feeling of doom, confidence was certainly knocked across the board. With plenty of fall through as well as gazundering on prices the challenges of 2023 were not few and far between. As we look into 2024 we are already seeing more favourable lending rates and property prices settling down giving a brighter start to the year for those looking to buy.
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Peter Stimson
Head of Product at MPowered Mortgages
House sales are a largely reflection of mortgage affordability as around 2/3rds of house sales are funded with a mortgage. With interest rates rising to the levels seen in 2023, it’s no surprise that we have seen a huge drop off in sales as buyers have simply been priced out of the market. We have not seen the wave of distressed sellers that many have predicted so most sellers have largely held firm, with prices only declining by small amounts, leading to very low sales figures in 2023. However, with rates falling towards the end of 2023 and set to fall further, we predict 2024, will be a significantly better year for overall house sales as affordability for buyers improves.
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Akhil Mair
Director at Our Mortgage Broker
The notable decrease in sales volumes from 2022 to 2023 is indeed worrisome. While it's understandable to ponder the consequences of such a decline, it's important to recognise that the housing market is influenced by a multitude of factors majority of the time out of our control. While this decline prompts inquiries into market dynamics, it doesn't necessarily imply an imminent collapse. It could signify shifts in buyer behavior, economic conditions, or regulatory changes. Nevertheless, it's imperative for stakeholders to vigilantly track these trends and adjust strategies accordingly to maintain a stable and sustainable housing market for all parties involved. Undoubtedly, more efforts are needed; I cannot deny this fact. However, it cannot be emphasised enough that we are still navigating through uncertain times.
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Grant Reynolds
Director of Wealth Management at IP Global
While 2023 presented difficulties with slow business, rising interest rates, high inflation, and economic unease, there's no evidence of a housing market collapse. The December slowdown was predictable due to typically weak holiday activity. However, 2024 paints a brighter picture with a significant surge in inquiries, Nationwide's January housing data hinting at recovery, improved business activity as mortgage rates decline, and even a decreasing inflation trend.