The number of residential property transactions dipped in July following the vote to leave the EU, new data shows.
According to HMRC, the number of residential property transactions fell by 0.9% between June and July to 94,550.
HMRC attributed the decline to April’s increase in stamp duty resulting in a rush to purchase before the deadline and buyers putting off transactions until after the EU Referendum.
Stephen Smith, director of Legal & General Housing Partnerships, said that despite the drop blame should not be entirely pinned on the Brexit vote.
He said: “Though some buyers may have held off on purchasing a property ahead of the referendum, it’s important to remember that transactions have remained static for some time now, and that the seasonal lull we typically see over the summer months is also likely to have played a role.
Andrew Bridges, managing director of Stirling Ackroyd, said, “There’s been a slight stutter in the property markets post-referendum recovery – but it’s no cause for alarm. It’s the usual suspects making moving on to and up the ladder a challenge. Stamp duty is certainly a barrier, alongside the difficulty of deposit-saving for many, and the latest Help to Buy ISA news will do little to inspire hope for London’s first-time buyers.”
“In London these problems will sharpen over the next couple of months as lower interest rates encourage buyers to grab a property with a cheaper mortgage, putting those with small deposits at a disadvantage. The only solution to the crisis is to build our way out of the rapid house price inflation we have seen in recent years, and ensure there are enough high quality homes on the market.”
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