Monthly residential property transactions fall by a quarter in April
31 May 2023
According to the latest figures, the number of UK residential property transactions in April 2023 is 82,120 (provisionally seasonally adjusted estimate) – a fall of 25% year-on-year and 8% lower than March 2023.
The figures also show that the provisional seasonally adjusted estimate of the number of UK non-residential transactions in April 2023 is 9,570, 11% lower than April 2022 and 10% lower than March 2023.
Commenting on the latest figures Peter Graham, partner and head of RSM UK’s Real Estate and Construction team in the North West, said: ‘The statistics show that seasonally adjusted UK residential property transaction volumes fell significantly compared to the previous year, and lower than the previous month. The UK residential property market is clearly facing challenges with a lack of demand from buyers who are having to deal with significantly higher borrowing costs alongside high inflation which is having an adverse impact on their buying power. This month’s further increase in the bank of England base rate to 4.5% and stubbornly high inflation has continued to drive up mortgage rates making it more expensive to fund a house purchase.
‘There is a similar fall with non-residential transaction volumes with April 2023 volumes 11% lower than April 2022 and 10% lower than the previous month.’
He added: ‘The UK commercial property market is also suffering from higher interest rates with the market predicting future rate increases in 2023 which is clearly having an impact on transaction volumes.’
The figures also show that the provisional seasonally adjusted estimate of the number of UK non-residential transactions in April 2023 is 9,570, 11% lower than April 2022 and 10% lower than March 2023.
Commenting on the latest figures Peter Graham, partner and head of RSM UK’s Real Estate and Construction team in the North West, said: ‘The statistics show that seasonally adjusted UK residential property transaction volumes fell significantly compared to the previous year, and lower than the previous month. The UK residential property market is clearly facing challenges with a lack of demand from buyers who are having to deal with significantly higher borrowing costs alongside high inflation which is having an adverse impact on their buying power. This month’s further increase in the bank of England base rate to 4.5% and stubbornly high inflation has continued to drive up mortgage rates making it more expensive to fund a house purchase.
‘There is a similar fall with non-residential transaction volumes with April 2023 volumes 11% lower than April 2022 and 10% lower than the previous month.’
He added: ‘The UK commercial property market is also suffering from higher interest rates with the market predicting future rate increases in 2023 which is clearly having an impact on transaction volumes.’
Peter Graham
Partner, Head of Capital Allowances
Peter Graham
Partner, Head of Capital Allowances