In 2023, England saw property sales amounting to £154.7 billion, which is a 48% or £141 billion decrease from the previous year, according to recent studies.
eXp UK, after reviewing data on sold property prices from the Land Registry for the year 2023 (January to December – most recent data available), reported on the totality of homes sold in England and their combined value at the point of sale.
The agency then compared these figures to the prior year to evaluate the effects of a tougher year on the overall expenditure in the property market.
The decline in spending can be attributed to more difficult market circumstances, such as rising interest rates that have constrained the purchasing ability of buyers, affecting both the prices they’re prepared to pay and the number of buyers willing to commit to purchases.
Consequently, England’s average house price fell by 2.1% over the year, and the number of transactions in 2023 was 47% less compared to 2022.
London experienced the greatest annual drop among all English regions, with the average home value decreasing by 4.8%.
Yet, London still dominated in terms of total home sales value, with nearly £40 billion in property sales, representing 22% of the national total, as found by eXp UK.
To give an idea of London’s dominance in the market, the runner-up, Surrey, saw home sales of £5.8 billion, making up just 4% of the national figure.
The City of London saw the lowest home sales value in 2023 with £60.6 million, and Rutland (£101.7 million), Isle of Wight (£383.3 million), Herefordshire (£366.7 million), and Northumberland (£623 million) were the only counties where totals fell below £1 billion.
Bedfordshire recorded the steepest year-on-year drop in home sales, with £1.64 billion worth sold, a 56% fall from 2022.
Buckinghamshire (-53%), Lincolnshire (-52%), Cambridgeshire (-52%), and Northamptonshire (-52%) also experienced some of the most significant declines in total property sales value year on year.
Adam Day, the head of eXp UK, remarked: “The property market faced challenges in 2023, and the combination of higher interest rates and overall market uncertainty led to many buyers staying on the sidelines. Those who did buy were more cautious.”
“The average house price did go down over the year, but the decrease was less than expected, showing the market’s resilience. Even though the total value of sold homes was down, it’s important to note that the market still performed well compared to what some had foreseen,” he added.
“Last year’s £154.7 billion worth of property sales is significant, although lower than the boom seen in 2022. The outlook is positive, with stable interest rates, declining inflation, and anticipated rate cuts, which could help the market recover and boost the total value of homes sold in 2024,” Day concluded.
