The number of residential property transactions fell by 3.2% to 99,910 between March and April, according to figures from HM Revenue and Customs. Andy Sommerville, director of Search Acumen, said the decline in property transactions was “symptomatic” of a market exercising caution as a result of election and Brexit uncertainty. “The ongoing uncertainty surrounding Brexit […]
The number of residential property transactions fell by 3.2% to 99,910 between March and April, according to figures from HM Revenue and Customs.
Andy Sommerville, director of Search Acumen, said the decline in property transactions was “symptomatic” of a market exercising caution as a result of election and Brexit uncertainty.
“The ongoing uncertainty surrounding Brexit compounded by the snap election called during mid-April has no doubt contributed to the slow-down in both commercial and residential activity,” he said.
“Many buyers, sellers and investors will have chosen to adopt a ‘wait and see’ approach over the course of the past month.
“Following the outcome of the general election, we expect the market will resume normal levels of activity in time for the traditional summer peak.”
April’s figure is 20.3% higher compared with the same month last year when there were 83,050 transactions.
HMRC pointed out that direct comparison of residential transactions with April 2016 should be avoided due to the unusually low levels of activity following the 3% stamp duty increase on buy-to-let properties and second homes.
Before April last year there were unusually high levels of activity in the housing market as buyers rushed to beat the stamp duty increase, which was then followed by a dip in transactions.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “At first glance one might think these figures are hugely disappointing but when you consider what was happening this time last year and what has happened to property transactions in the past few months, they represent steady progress for the housing market.
“Transaction numbers are really key to what is going on in the market – how many people are actually getting on with the business of moving – and these numbers suggest some resilience.
“What the HMRC figures do show is the huge impact that changes to stamp duty can have, not just on property transactions but the wider economy bearing in mind how many people are dependent in other trades on people moving home.”
The housing market is continuing to slow, with average prices falling by £1,000 in the past month.
According to the latest data from the Office for National Statistics, on a monthly basis house prices fell 0.6% to £216,000 in March.
Nationwide reported that house prices fell 0.4% in April, the first time house prices have fallen in consecutive months for nearly five years.
Mortgage approvals also fell to a six-month low in March, a sign homebuyers are becoming increasingly cautious as they start to feel the pressure on their finances following last year’s Brexit vote.
Figures from the Bank of England show the total number of mortgages approved fell by over 2,000 to 122,918. It is the second month in a row mortgage approvals have fallen.
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