Housing market hasn't been entirely obliterated by high rates, asserts Moverly
The UK property market has witnessed a remarkable surge in activity this decade, with the average number of homes sold per year significantly higher compared to the previous decade. According to new research from Moverly, the average number of transactions in the UK property market per month this decade is 7.5% higher than the previous one.
Gemma Young, CEO of Moverly, stated, "The property market activity this decade is substantially higher than the previous decade, which is welcome news for an industry that suffered greatly following the global financial crash in 2008." However, she also warns that the increased property transactions could lead to backlogs and bottlenecks.
Innovations in technology can help bypass obstacles that made the transaction process sluggish in the past. Homes can now be made digitally sale-ready, allowing the process to be supported by technology. Estate agents and home sellers can now start property transactions digitally, collecting Material Information upfront. This digital approach can radically reduce the administrative time involved in each property transaction.
The research analysed the average number of annual UK residential property transactions seen each decade from 1990 to now. During the 1990s, 12.935 million homes were sold, averaging 1.293 transactions per year. The noughties saw an increase to 1.405 million, an 8.6% increase versus the previous decade. Despite the financial crash in 2008, the average number of homes sold per year in the years following 2010 was 11.036 million. As of now, the UK has seen an estimated 5.337 million residential transactions in less than five years, averaging 1.186 million per year.
The increase in house prices signals a new dawn for Wales. House prices are currently experiencing the biggest annual rise since 2022. Young also mentioned that the positive figures come despite the property market having to weather a period of prolonged uncertainty spurred by higher interest rates. She believes that the market looks set to continue performing well over the coming years.
The research provides access to the full data tables used for the analysis. For a more detailed look at the trends in property transactions over the decades, the data can be found here.
Comparison by Decades
The data shows that from 1990 to the 2020s, the average number of property transactions per year generally increased, but with notable fluctuations influenced by economic cycles and mortgage market conditions.
- 1990s: Housing starts and market activity were low in the early 1990s due to a credit crunch and recession, with housing starts dropping to about 1 million units annually and the NAHB Housing Market Index (HMI) declining to 20. As the decade progressed and the economy recovered, housing starts rose to about 1.6 million annually by 1998-1999, with the HMI consistently over 70, indicating strong market conditions.
- 2000s: Early 2000s saw modest declines during the dot-com bust and 9/11 attacks, but housing starts surged to over 2 million by 2005. This decade ended with the Great Recession triggered by the subprime mortgage crisis, where housing starts collapsed to around 0.5 million units annually and the HMI hit a historic low of 8 in 2009. Mortgage rates fell from about 8% in 2000 to 5.4% in 2009 due to Federal Reserve interventions, affecting housing affordability.
- 2010s and 2020s: Post-recession recovery has been slow but steady, with ongoing undersupply issues contributing to a constrained market. Existing-home sales have fluctuated, with recent data showing a decrease in sales by 2.7% in June 2025 and median home prices hitting all-time highs (e.g., $435,300 in mid-2025), reflecting rising prices amid limited supply. Mortgage rates have remained relatively low compared to the 1990s and 2000s but have varied due to global economic and geopolitical events.
Key factors influencing the market across these decades
- Economic cycles: Recessions in the early 1990s and late 2000s had significant negative impacts on transactions, with recoveries driving increased activity late in the 1990s and mid-2000s.
- Mortgage interest rates: Mortgage rates declined significantly from near 10% in 1990 to below 7% in recent years, which generally supports more transactions but also reflect economic conditions influencing demand.
- Supply constraints: Persistent undersupply of housing emerged post-2008 crisis, limiting transaction growth despite demand, and pushing prices higher, affecting affordability for first-time buyers and impacting transaction volume.
- Demographic factors: Population growth and household formation rates influence housing demand, although data shows construction has lagged population growth for several years.
In summary, property transactions increased from the low of the early 1990s through the late 1990s and early 2000s, experienced a sharp drop and slow recovery following the 2008 financial crisis, and by the 2020s face challenges from supply shortages and high prices despite relatively lower mortgage rates. This complex interplay of economic, financial, and demographic factors has shaped the trajectory of the UK property transaction volumes over these decades.
Finance and innovation, particularly in the realm of real-estate technology, could potentially ease the backlogs caused by the increased property transactions observed this decade. For instance, digital approaches to property transactions can significantly reduce administrative time, making the process more efficient. (innovation, finance, investing, housing-market, real-estate)
Additionally, as the data suggests, averages show a general increase in property transactions per year across different decades, however, the number of transactions may fluctuate due to factors such as economic cycles and mortgage market conditions. (comparison by Decades, housing-market, real-estate)
