The latest Property and Homemover Report from property and data insight specialist, TwentyCi, has revealed that almost 70% of all properties listed in Q1 2023 have sold, with 269,000 residential sales recorded in the quarter.
The average asking price has held steady at £420k, 24% higher than in Q1 2019.
The report also shows that the availability of residential property stock has improved, with levels only 9% below pre-pandemic figures.
New instructions decreased in Q1, but a significant injection of new supply entered the market in March, indicating a potential upward trend.
Colin Bradshaw, CEO at TwentyCi, commented on the property market’s resilience despite various economic and geo-political challenges. He noted that the market demonstrated a robust performance against significant headwinds and that the transactions reflect a return to more normal market conditions.
“Our Q1 2023 report provides a comparison with 2019 which is widely considered to be the last period in which normal market conditions operated.
“The intervening period is peppered with quantum shocks including the rollercoaster of the pandemic; the fiscal policy changes effected through the Stamp Duty holiday; monetary policy pushing up interest rates to tackle inflation; and the short, but damaging tenure of Liz Truss as Prime Minister,” Bradshaw said.
Sales agreed across the UK were, on average, 7.5% lower in Q1 2023 compared to Q1 2019, but regions such as the North East, Inner London, and Scotland saw positive numbers. Inner London experienced a slow recovery post-pandemic but is now proving to be the most robust region.
“In reality the property market has demonstrated a robust performance against significant and determined headwinds,” Bradshaw added.
As consumer confidence returns due to easing energy costs and a receding risk of recession, Bradshaw expressed “cautious optimism” about the residential market’s future. If inflation begins to decrease, interest rate reductions could further support market momentum.
“Whilst doomsday scenarios can’t be ruled out, it seems there is room for that old phrase – cautious optimism. As energy prices ease and interest rates and inflation look set to be near peaks or trending downwards, stable or upside scenarios have certainly started to look more credible,” Bradshaw concluded.
