Houses sold in 2023 estimated to be lowest since 2012
Targets for selling homes this year will not be blowing the roof off as new data reveals sales are down by a fifth.
New research from Zoopla’s monthly house price index, which was announced yesterday, has discovered house price sales are currently down by a fifth compared to this time last year, meaning sales are on track to the lowest level since 2012.
The reason behind house sales plummeting is the constant increases on interest rates by the Bank of England have pushed homeownership to unattainable levels, and as a result, house prices experienced the sharpest fall in 14 years in July according to data from Nationwide.
Against this backdrop, the Bank of England are speculated to continue hiking up interest rates, even though inflation rates are coming down. As a result, 1.6 million households with fixed mortgage deals which are set to expire this year are due to face a sharp increase in payments.
According to economists from the Bank of England, around a million homeowners are facing a £500-a-month increase in their mortgage repayments at the end of 2023.
Following this, research from Halifax displayed property values declined for a fourth month in a row by 0.3% in July, with the affordability of mortgages being attributed as the main factor for this drop.
However, Shahram Shaida, CEO and founder of Allbricks, has stated that his companies approach could hold the key to assisting with Britain’s housing market woes.
‘Most of us have two options: rent or get a mortgage,’ Shahram said. ‘The problem is that for a vast majority of the population, mortgages require unaffordable deposits and interest rates. The traditional mortgage represents an antiquated, outdated model that isn’t really fit for purpose for many UK home buyers anymore.’
He added: ‘With rising interest rates, the cost-of-living, and even the increasing number of people who are choosing to be self-employed, we need and deserve a better solution.
‘Allbricks has uniquely unitised residential property to demonstrate wealth creation through home ownership.
‘By removing the mortgage model and creating a crowdfunding type of approach, we’ve made something better than a mortgage for home buyers, better than a buy-to-let for investors and creating new unique investment opportunities for institutional investors.’
Image: Nina Kitaeva
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