UK Home Sales Expect to Hit at Lowest Level in 11 Years

The number of houses sold in the UK is trending to reach the lowest since 2012, according to real estate company Zoopla. Many worries about the UK housing bubble as the demand for homes has dropped by 34% compared to the 5-year average level.

The 14th consecutive rate hikes on 3 August also contributed to the 15-year high mortgage at 5.25%, so does the cost of living and inflation.

The report shows 21% YoY decline in sales to be completed in 2023, expecting one million transactions to finalize this year, which reflects to each household moving once every 23 years.

The UK House Price Index (HPI) set to be released this Friday would make a major impact on the UK housing market. As both MoM and YoY HPI turned negative since March this year, indicating the crash of UK housing price and demand.

Meanwhile, the Office for National Statistics indicates the average UK house cost has risen 1.7% in 12 months, moving the price per house to $364,000 or 5,000 GBP more than last year.

The number of cash sales is estimated to fall by 1% YoY while the mortgaged sales could drop by 28%, according to Zoopla’s executive director. Despite mortgages starting to come down, it remained at a higher level of 6.7% average for the 95% of 2-year fixed mortgages.