The UK housing market continued to flatline last month, with the number of property transactions falling by nearly 2,000. According HM Revenue and Customs, the number of residential property transactions fell by 1.8% between August and September. The figures show that on a seasonally adjusted basis there were 100,850 residential transactions in total, up 4.6% […]
The UK housing market continued to flatline last month, with the number of property transactions falling by nearly 2,000.
According HM Revenue and Customs, the number of residential property transactions fell by 1.8% between August and September.
The figures show that on a seasonally adjusted basis there were 100,850 residential transactions in total, up 4.6% on last year.
Despite the fall, experts believe a downturn in the market is unlikely, with figures broadly on a par with previous years.
Brian Murphy, head of lending for Mortgage Advice Bureau, said that the dip was largely reflective of fewer people moving due to the summer holiday period.
“Before the naysayers suggest that this month on month drop in numbers is a sign of the market starting to collapse, it’s worth noting that on reviewing the data since 2006 there has been a slight decrease in transaction levels in September and August most years,” he said.
“The figure for September would suggest a market that’s continuing to hold steady, despite the prevailing headwinds of political and economic climate,” he added.
UK house price growth has come to a standstill, driven by record low stock numbers and political uncertainty.
The Royal Institution of Chartered Surveyors has reported a slowdown in the housing market, largely a result of a decline in London and the South East dragging down prices.
Its latest UK Residential Market Survey reported a decline in both sales and new buyer enquiries, with sentiment flatter than any point since the EU referendum result.
The percentage of surveyors reporting a fall rather than a rise in new buyer enquiries was 20% – the sixth consecutive negative reading.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “These results follow the trend we have seen since the beginning of 2017 – a stagnant housing market as homeowners choose to stay put. With no real incentive or boost for house building, supply remains subdued and buyer activity remains sluggish. The only way we will see transaction numbers grow is with an injection of activity into the housebuilding sector that has to be led by No 10.
“It’s great that housing is a key issue for this Government, but only time will tell if they can deliver on their promises. Otherwise, intergenerational inequality in the housing market will continue to rise, with Generation Rent struggling to become Generation Buy.”
According to the latest Halifax House Price Index, annual house price growth rose 4% last month, up from 2.6% in August – the highest figure since February.
On a monthly basis, house prices rose 0.8% – taking the average price of a property to £225,109.
