"Some heat has come out of the purchase market compared with this time last year which is no surprise and is welcome as that frenetic pace could not continue."
On a seasonally adjusted basis, transactions totalled 114,650, 35.7% lower than March 2021 and 2.6% higher than February.
March's figures mean that in Q1 the UK property market saw its 5th busiest quarter since 2007.
Kevin Roberts, director of Legal & General Mortgage Club, commented: “Despite the pressure on borrowers caused by the rise in the cost of living, demand remains high and the overall outlook for the market is strong. This is another clear reminder of the resilience of the current housing market and its ability to weather difficult conditions.
“Even as the market experiences a healthy spring, the more complicated conditions mean that the role of advice is now more important. Borrowers may well need more support and reassurance to find the right mortgage for their needs. This is an opportunity for advisers to really demonstrate the scope of their expertise and add value, during what will be a pivotal time for their clients.”
Jeremy Leaf, north London estate agent and former RICS chairman, said: "Transactions are usually a better measure of housing market health than more volatile prices – but not in this instance.
"These figures reflect sales which mainly took place a few months ago when activity was more lively. At the sharp end, we have noticed that since then the rising cost of living and interest rates, especially for those on tight budgets, are contributing to an easing of price growth and a drop in sales.
"Demand still comfortably exceeds supply and correctly-priced houses continue to attract considerable interest while mortgage repayments remain relatively affordable."
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "Demand for mortgages is strong as rates remain competitive, even as Swap rates continue to rise.
"Some heat has come out of the purchase market compared with this time last year which is no surprise and is welcome as that frenetic pace could not continue. Remortgaging activity is strong as borrowers attempt to lock into low mortgage rates before they disappear.
"There are concerns that rising living costs will impact lenders’ affordability calculations when it comes to getting a mortgage, making it more important than ever to seek advice."
