Appetite among buyers fell abruptly across all regions in 2023, data from House Buyer Bureau has revealed.
The firm measured transactions as a percentage of for-sale stock in the three months to October 2023, compared with the corresponding period the year before.
Across England and Wales, proportional sales fell by 5.6%, with the largest drop in demand taking place in the East Midlands, and the most minor reduction happening in the North East.
There were 41,507 sales per month in the three months to October 2023, down from 43,130 the year before.
The East Midlands saw demand drop by 7.4%, followed by the East of England and the South West, at -7.0% and -6.7% respectively.
In the East Midlands sales per month dipped by around 300 year-on-year, while in the East of England and South West they fell by around 600 and 200 respectively.
The market in the North East was least affected by the slowdown, where sales as a percentage of stock only fell by 2.0%, while the transaction count in fact increased, by nearly 400.
London only saw a minimal reduction of 3.0%, with transactions falling by around 300 annually.
Chris Hodgkinson, managing director of House Buyer Bureau, said: “The housing market slowed in 2023, as struggles with affordability and rising mortgage rates put a break on demand.
“The positive is aspiring buyers have a chance to find a good deal in the current climate – potentially shaving some cash off the asking price now properties are no longer flying off the shelves.
“While there’s been a general slowdown in housing activity, the North East seems to be the most shielded from the economic slowdown, where demand seems almost as strong as ever.
“What’s more, we’ve already seen initial signs that the market is starting to find its feet and with the Bank of England continuing to hold interest rates, buyers are able to plan their future purchases with a greater degree of confidence.
“This puts the market in good stead for 2024 and we expect market activity to increase after what has been a difficult year.”
