The number of houses sold in the UK fell in March leading to concerns the sluggish market will impact both first-time buyers and those further up the ladder.
Statistics released today by HM Revenue and Customs revealed residential property transactions plummeted by 7.2% between February and March.
The figure, when ‘seasonally adjusted’ was 11.8% lower when compared to the same month last year.
Kevin Roberts, director of Legal & General Mortgage club, said transactions had remained broadly flat for some time now as the lack of housing supply and rising demand continued to take its toll.
He added: “Not only is this limiting the options available to potential borrowers looking to buy their first property, but it’s having an impact higher up the ladder too, with many homeowners opting to improve rather than move.”
Steve Seal, director of sales and marketing at Bluestone Mortgages, also said the figures provided further evidence of the ‘continued stagnation’ in the housing market. He said the lack of supply meant the market was not serving the needs of all those within it, or wishing to enter.
“Combine our lack of supply with rising cost of living,” he added, “and it’s clear that finances are being tightened for those trying to save for a deposit.”
Jeremy Leaf, a north London estate agent and former Royal Institution of Chartered Surveyors (RICS) chairman said the transaction figures were a much better indicator for ‘those at the coalface’ of market health than house prices.
And he did not think the fall in numbers in March meant it was time to panic.
He said: “These figures, which of course reflect activity over the past few months, show the market to be softening but not collapsing as buyers and sellers seek to establish fair price levels.
“Those that do are clearly getting on with moving, whereas those that don’t are just getting left behind.”
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