Number of house sales by month in the UK 2005-2024

During the coronavirus pandemic, the number of house sales in the UK spiked, followed by a period of decline. In 2023, the housing market slowed notably, and in April 2024, transaction volumes fell below 33,000. House sales volumes are affected by a number of factors, including mortgage rates, house prices, supply and demand as well as the overall health of the market. The economic uncertainty and rising unemployment rates has also affected potential buyers' intentions.

How have house prices developed?

With demand for housing remaining strong during the pandemic, house prices across the UK saw a dramatic increase. In 2023, the average house price in England and Wales slightly declined, as the market cooled. In Scotland and Northern Ireland, however, prices continued to rise. 

Dramatic increase in mortgage rates impacting home sales

For a long period, mortgage rates were at record-low, allowing prospective homebuyers to take out a 10-year loan at a mortgage rate of less than three percent. In the last quarter of 2021, this period came to an end as the Bank of England rose the bank lending rate to contain the spike in inflation. Naturally, the higher borrowing costs affected consumer sentiment, urging many homebuyers to place their plans on hold.