"A fall in property transactions won’t come as a shock when the whole of the UK is dealing with 40-year-high inflation rates and a cost of living crisis."
On a seasonally adjusted basis transactions totalled 106,780 - 12.1% lower than April 2021 and 3.9% lower than March 2022.
Chris Hutcinson, CEO of Canopy, commented: “A fall in property transactions won’t come as a shock when the whole of the UK is dealing with 40-year-high inflation rates and a cost of living crisis. It’s no wonder adults are struggling to prepare to purchase property as they adapt their spending habits, all the while ensuring a good level of financial fitness.
“As inflation rates are expected to hit double figures later this year, mortgage prices will continue to increase and push potential first-time buyers out of the market. We therefore need to do all we can to help them, and this includes using their current financial habits to their advantage.
“80% of renters have never missed a rent payment, yet many don’t track this on their credit score. When financial wellness is coming into question, it’s essential that positive habits like this are tracked, and have an impact. It could ultimately give a first time buyer the boost over the line they need to take their first step onto the property ladder.”
Stuart Wilson, CEO at Air Group, said: “The mood music around the property market has certainly shifted in the last week or so, with swirling speculation around a dip in activity and average house prices as the cost-of-living crunch presses on. April brought hikes to the energy price cap, national insurance contributions, and council tax bills – all three of which are likely to have seen people tighten their belts and dented future purchase plans.
“However, with the property market having enjoyed strong growth over the last few years – thanks in part to the stamp duty holiday – older homeowners do have wealth tied up in their property that they can fall back on. Whether it is to repay an outstanding mortgage, support the younger generation or increase their retirement income, advisers should be having these conversations with their clients.
“Whether they are in the position to support them with their later life lending needs themselves or choose to refer to a trusted specialist, good advice will be critical for these individuals to help them navigate the market during these complex times.”
Emma Hollingworth, distribution director at MPowered Mortgages, added: “While we haven’t yet seen the high level of activity seen throughout the market in 2021, it is pleasing to see that transactions figures remain robust. Despite a further rise in interest rates, and the cost of living continuing to increase, there is still strong demand in the market. This is further proof of the resilience of our housing market and its ability to perform strongly through difficult economic times.
“However, with rates increasing at a rapid pace and with some economists predicting six more rate hikes in 2022 to a new high of 2.25% by year-end, time is of the essence for those looking to buy a home – and securing a mortgage before rates move again is paramount. The window of availability on mortgage deals is now shorter than it has ever been before, averaging just 21 days."
