Recent research conducted by agency brand Barrows and Forrester has indicated a significant drop in property sales across England and Wales. The analysis of Land Registry data for the first five months of this year has revealed a staggering 54% decline in transactions, coupled with a substantial 57% reduction in the total market value of homes sold compared to the preceding five months.
This downward trend in property sales has been witnessed across all regions of England and Wales, leaving no area unscathed. Particularly concerning is the London market, which has experienced the most severe decline, with a startling 57% drop in transaction volumes. Only 15,638 homes have been sold in the capital so far this year, exacerbating the already worrisome situation.
The East of England and the South East have also encountered significant reductions in transaction levels, standing among the regions most affected by this distressing trend. The East of England leads the pack with a staggering 59% decline in the total market value of homes sold, while the South East and London trail closely behind.
Surprisingly, despite being severely impacted by the decline in market activity, the South East continues to maintain its position as the top region in terms of total homes sold this year, with 24,210 transactions completed since January. The North West and South West also feature prominently in the top three regions. Notably, the South East boasts the most valuable property market, with an estimated £11.2bn worth of properties sold, followed closely by London with just over £11bn, and the East of England at £6.3bn.
Even the North East, situated at the bottom of the table, has seen approximately £1.3bn worth of property sales since the beginning of the year, underscoring the widespread impact of this declining trend.
James Forrester, the managing director of Barrows and Forrester, expressed his concerns about the consistent downturn in market activity, stating, “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.”
Forrester added, “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.”
With these staggering figures and the concerning implications for both buyers and sellers, the property market in England and Wales faces an arduous path to recovery. Industry experts are keeping a watchful eye on the situation, hoping for a reversal of fortunes in the near future.