Welcome to the latest edition of the TwentyCi Property & Homemover Report, providing a comprehensive review of the UK property market, created from the most robust residential research and property change sources available.

Our report provides a real-time review of the UK housing market in Q3 2023, covering 99.6% of all sale and rental moves.

This property market analysis and state of the nation report provides unique insight into the people behind the numbers, creating a picture of the demographic, regional and socio-economic factors impacting the UK housing market, including:

• Factual data (not modelled or sentiment-based)
• Full market coverage
• Demographic overlay
• Property sales data
• Property rental data

The report compares quarters two and three of 2023 to delve into the impact of the UK’s ongoing inflationary pressures and the effects of an elevated interest rate on property affordability. 

Report highlights

• During Q3 2023, we saw 272k Sales Agreed, a fall of 9.7% compared to Q2. The correction is indicative of the economic headwinds and, in particular, the significant rise of interest rates and mortgage availability, which is starting to apply the brakes on the residential market.

• The average asking price of property coming to market is £431k, down by 3.6% in Q3 compared to Q2. We must be mindful that this is reflective of the type of stock on the market.
• Residential Property Stock. We have seen a rise in supply of 2.6% compared to 2022, accompanied by a 16% decline in demand. A stock shortage no longer exists in all price brackets above £200k.
• 2023 Expectations. We can expect to see 1m+ transactions in 2023, in line with the volume of Sales Agreed that we have already observed.

“The UK residential property market remains characterised by subdued activity levels with 10% fewer homes changing hands each month compared with pre-Covid norms.  Given the rise in interest rates, which now appear set to remain around 5%* for a sustained period, it is unsurprising that house prices have also reduced.  Despite the gloom, lower asking prices and rising incomes are dampening the impact of higher rates on affordability at a time where rents are surging due to low supply suggesting house purchase remains attractive.” 

Alex Bannister – Independent Economist and former Director of Future Ventures, Nationwide Building Society

*Source: HM Treasury