Industry experts have displayed “deafening silence” on a selling crisis as fewer homes were sold in the UK last year than were sold in 2008, research from WiggyWam has revealed.
The research, which analysed the Land Registry database encompassing 29.3mn housing records since 1995, found 647,000 homes were sold in 2008 while only 580,000 were sold in 2023.
Additionally, the latest figures represented just 55 per cent of the total number of houses sold in 2021.
Estate agent platform WiggyWam argued the fact 2023’s sales figures were even lower than 2008's, which marked the beginning of the global financial crisis, underscores a “deep-rooted” issue in the housing market.
Despite the severity of the findings, WiggyWam argued there has been a “deafening silence” on the matter from industry experts.
The platform argued that whether this is due to “short memories or a general lack of scrutiny” is unclear, yet the lack of attention to the issue is “deeply concerning”.
To address this, WiggyWam issued a call to action, stating that it is “imperative” for all stakeholders - mortgage brokers, estate agents, lenders, and policymakers - to recognise and address this crisis.
“We urge industry leaders to give this issue the attention it demands. By doing so, we can begin to formulate solutions stabilise and revitalise the housing market,” it added.
Contributing factors
The findings were attributed to a number of factors including the surge in mortgage rates in 2022 following former prime minister Liz Truss’s mini-budget.
This caused the base rate to increase by 4,900 per cent in 2022, making it difficult for potential buyers to secure affordable financing to move home at a time when low interest rates and high demand has contributed to significant house price inflation.
Another factor mentioned was the aftermath of the government’s stamp duty holiday, which was announced by the government to stimulate demand during the pandemic.
This led to over a million property transactions, which had the effect of artificially inflating demand and “pulling forward” approximately 300,000 transactions from 2022 and 2023.
This surge created a bubble which has subsequently burst, causing a significant void in transactions in the following years.
WiggyWam argued the impact on homeowners looking to move presently is “significant” as the fall in transaction volume only affects the time it takes for a property to sell, but also the price a seller can realise for their home.
Based on the statistics presented, it appears house prices may now be poised to fall back to accommodate reduced buyer affordability.
tom.dunstan@ft.com
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