Soaring interest rates haven't completely decimated the housing market, according to Moverly's analysis.
In a recent development, Gemma Young, CEO of Moverly, has warned about the potential strain on current transaction processes due to an increase in market activity. According to Moverly's new research, the UK property market is experiencing a significant surge in transactions compared to the past ten years.
The research, which analysed the average number of annual UK residential property transactions seen each decade from 1990 to now, found that the noughties saw a surge in market activity, with an average of 1.405 million homes sold each year. This represented an 8.6% increase compared to the 1990s.
However, the financial crash in 2008 did impact the years following 2010, with 11.036 million homes sold, an average of 1.104 million per year. As we near the halfway point of the 2020s, the UK has seen an estimated 5.337 million residential transactions, equivalent to an average of 1.186 million per year. This marks a 7.5% increase compared to the previous decade.
Young stated that the current level of property market activity is substantially higher than the previous decade, and predicted that the market looks set to continue performing well over the coming years. This will be welcome news for an industry that suffered greatly following the global financial crash in 2008.
Innovations in technology can help sidestep obstacles that made the transaction process sluggish in the past. For example, estate agents and home sellers can now start property transactions digitally, collecting Material Information upfront. Digitizing property transactions can radically reduce the administrative time involved in each transaction.
Homes can now be made digitally sale-ready, and technology can support property transactions and make the process more efficient. Material Information can now be collected digitally during property transactions, further streamlining the process.
Although exact average yearly transaction counts from 1990 are not directly detailed in the available data, housing transaction trends have been increasing overall, reflecting greater market activity in the 21st century compared to the early 1990s. Forecast data from Statista predicts a continuation of this upward trend in transactions, anticipating a total of 1.4 million residential property transactions by 2029.
Despite the positive outlook, Young also warned about potential strain on current transaction processes due to increased market activity. She predicts more backlogs and bottlenecks in the property market due to the increased transactions.
The provided data tables contain the full research information used for the analysis. The UK housing market has experienced significant price increases since the 1990s, with average house prices rising from approximately £59,587 at the start of the 1990s to much higher values in subsequent decades, affecting transaction volumes and market dynamics. Changing buyer behavior and property types over recent years have also influenced transaction statistics and valuation metrics.
In conclusion, the comparative data indicate an overall increase in the average number of UK residential property transactions from 1990 to the 2020s, supported by market growth and demographic shifts, with forecasts projecting further increases through the late 2020s. However, no precise year-by-year transaction data or Moverly analysis was found in the sources consulted.
- The potential strain on current transaction processes in the UK housing market could increase due to increased market activity and the projected rise in transactions, as stated by Gemma Young, CEO of Moverly.
- Innovations in technology, such as digitizing property transactions and collecting Material Information digitally, can help reduce administrative time and make the process more efficient, a factor that could become increasingly important as the housing market continues to grow.
- While the UK housing market has seen a significant increase in average number of residential transactions from 1990 to the 2020s, with forecasts predicting a further increase through the late 2020s, the industry should be prepared for potential bottlenecks and backlogs due to the increased transactions, as warned by Gemma Young.
