High interest rates haven’t completely ruined the housing market, Moverly explains
New research has revealed so far this decade, there has already been a significant increase in the average number of transactions seen across the property market on a monthly basis compared to the past ten years.
To conduct the research, experts from Moverly, material information and digital property pack provider, analysed the average number of annual UK residential property transactions seen each decade from 1990 to now.
The research, which was published this morning, found that during the 1990s 12.935million homes were sold, equating to an average of 1.293 transactions for each of the ten years.
However, this level of market activity soared in the noughties. 1.405million homes were sold on average each year, an increase of 8.6% versus the previous decade despite the turmoil experienced in 2008. Though the financial crash did impact the years following 2010 as 11.036million homes were sold – an average of 1.104million per year.
Now, as we near the halfway point of the 2020s, transaction numbers appear to be making a strong recovery. In less than five years, the UK has seen an estimated 5.337million residential transactions. This is equivalent to an average of 1.186m per year, which currently marks a 7.5% increase versus the previous decade.
Gemma Young, CEO of Moverly, said: ‘As we approach the halfway point of the current decade, the figures show that property market activity sits substantially higher than the previous decade and this will be welcome news for an industry that suffered greatly following the global financial crash in 2008.
‘These positive figures come despite the fact that the property market has had to weather a period of prolonged uncertainty spurred by higher interest rates and now that we’ve weathered the storm and are heading in the right direction, the market looks set to continue performing well over the coming years.’
‘This is going to put real strain on the current transaction processes and could lead to more of the backlogs and bottlenecks that we’ve seen many times in the past,’ Gemma added. ‘But today, innovations in technology mean that most of the obstacles that made the transaction process so sluggish in the past can be easily and inexpensively sidestepped. Estate agents and those selling and buying homes can start processes digitally by collecting Material Information upfront and even getting homes completely digitally sale ready. This allows the process to become supported by technology and can radically reduce the admin time involved in each and every property transaction.’
A list of the full data tables used for the research can be accessed here.
Image: Liz Sanchez-Vegas
