Property sales fell 15% in 2022 - HMRC

Agents sold 14.7% fewer properties during 2022 amid the end of the Stamp Duty holiday and increased economic uncertainty, HMRC figures suggest.

The latest provisional property transaction data from HMRC shows there were 108,960 sales registered with the taxman during December.

The non-seasonally adjusted figure is 1% down annually and 3% lower than in November 2022.

The estimate would take the total number of property sales for 2022 to £1,258,090, down from £1,476,020.

This suggests sales suffered as agents tackled the end of the Stamp Duty holiday, rising inflation and higher mortgage rates hit the market.
 

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Transactions tend to be a better indication of market strength than more volatile prices. However, the small changes in today’s numbers show only part of the story unfolding after the mini-Budget slammed the door on a significant proportion of ongoing activity.

‘Since then uncertainty has reigned since interest rates shot up. Business has only recently begun to return since some of those rises have been reversed but lack of supply continues to hold back buyers.'

Frances McDonald, research analyst at Savills, added:  “Lead indicators suggest this slowdown is likely to continue with mortgage approvals for November down by 30% when compared to the average for November 2018 and November 2019. 

“Our latest buyer and seller survey suggests that needs-based buyers are likely to be the most active this year whilst higher mortgage rates limit more discretionary and lifestyle moves. However, levels of commitment to move amongst those wanting to right size their homes rises significantly over the longer term.”