The number of residential property transactions fell by 0.7% between January and February to 103,910, according to new data from HM Revenue and Customs.
This figure is 1.9% lower compared with the same month last year when there were 104,770 sales.
Jeremy Duncombe, Director, Legal & General Mortgage Club, said: “February’s results continue last month’s trend of a flattening in seasonally adjusted property transactions. Far from this signifying a lack of demand, however, a combination of soaring house prices, coupled with a serious lack of affordable housing continues to price thousands of want-to-be buyers out of the market.
“Until we restructure Britain’s housing market, first time buyers will continue to become increasingly outpriced and excluded from the home ownership market. It is time for the government to deliver on the plans set out in the Budget, the Autumn Statement and the White Paper to help support members of ‘Generation Rent’ step onto the property ladder.”
Ishaan Malhi, CEO and founder of online mortgage broker Trussle, said the supply crisis and the widening gap between wages and house prices were continuing to weigh on the market.
“Both will need to be addressed before we see the return of a property market that truly works for everyone,” he said.
“A 0.7% decrease in property purchases from January, 1.9% lower year-on-year, is a wakeup call to the problems facing the housing market. February has broken a four month long chain of consecutive growth in property purchases, which was itself supported by the cheapest mortgage rates we’ve ever seen.
“These low rates have helped buyers in the short term, but supportive mortgage rates can only go so far – what we need are more houses to go around. With inflation on the rise, interest rates may soon follow suit, so homeowners and aspiring homeowners alike should be doing all they can to make the most of these rates while they are available.”
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