House prices are up 2.1 per cent over the past year according to Nationwide
We thought it was quite an interesting statistic that earlier in the year Savills calculated the total value of residential property in the UK to be worth around £9 trillion. Equally interesting is this set of statistics below from Nationwide, writes Clive Scrivener, Founder Partner at Wimbledon-based Chartered Surveyors, Scrivener Tibbatts Ltd.
Whilst house prices are up 2.1 per cent over the last twelve months (i.e. well below the rate of inflation), sales volumes also tell an interesting story.
2015/16 1.325 million
21016/17 1.152 million
2017/18 1.207 million
2018/19 1.190 million
2019/20 1.170 million
2020/21 1.190 million
2021/22` 1.375 million
2022/23 1.208 million
2023/24 1.001 million
2024/25 1.224 million
Annual transactions peaked at 1.375 million in 2021/22, fuelled by the unique circumstances of the pandemic, cheap borrowing and the stamp duty holiday. But volumes then fell away sharply, reaching just over one million in 2023/24, the lowest in recent years, as higher interest rates and stretched affordability dampened demand.
Does this most recent data, point to a recovery? Sales in 2024/25 rose to 1.224 million, putting the market broadly back in line with the long-run average of around 1.15 to 1.2 million transactions a year. The sharp dip now looks more like a correction than the start of a prolonged downturn.
Taken together, the figures suggest a property market that is resilient if unspectacular. Prices are stable in nominal terms, volumes are rebounding after last year’s trough, and confidence appears to be returning gradually. This is not a boom and certainly not a bust – more a cautious return to normality in the face of ongoing economic pressures.
If you would like to discuss something related to a property valuation please contact Clive Scrivener direct via email at Clive@scrivenertibbatts.co.uk or call 020 8971 2983.
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(Picture credit: Pexels.com_Binyamin Mellish)
