PropertyJul 24 2018

Property transactions remain stagnant

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Property transactions remain stagnant

Property transactions remained stagnant in June 2018, according to figures from HM Revenue & Customs.

The latest UK property transaction statistics showed a seasonally adjusted figure of 96,340 residential and 9,710 non-residential transactions in June.

The report showed residential transactions dropped by 3 per cent from May’s figure of 99,290 and 5.7 per cent from June 2017.

Non-adjusted residential figures rose by 13 per cent from 95,340 in May to 107,750 in June, but still remained down compared to the same month last year by 8.8 per cent.

HMRC said non-adjusted non-residential purchases have seen monthly peaks and falls due to the seasonal nature of the transactions, with a UK figure of 10,030 in June - up from May’s 9,750 but down from 11,760 in March.

Jeremy Leaf, north London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors, said the number of property transactions was a much better indicator of market strength than house prices, with recent economic and political uncertainty reflected in these lower, seasonally-adjusted numbers.

He said:  "We certainly would have expected higher figures bearing in mind the spring buying season is generally the best for the property market.

"However, we are not really surprised when, on the ground, we are seeing fewer buyers nervously trying to negotiate best possible terms and transaction times lengthening as a result."

Mr Leaf said he did not expect any great change but had noticed more listings and viewings in the past month or so, which he hoped would be reflected in slightly higher transaction numbers later in the year.

Kevin Roberts, director at Legal & General Mortgage Club, said the overall transaction figures were stagnant with barriers, such as stamp duty and the high price of property in urban areas, deterring movers.

He said: "For many the maxim remains ‘improve, not move’, as they seek to renovate or develop their homes, rather than move up the housing ladder.

"The biggest factor is housing supply. The nation simply has not built enough new homes over the last decade to keep up with demand.

"Innovation in the mortgage market and schemes such as shared ownership is helping, but if we want to resolve the housing crisis once and for all, we need to meet the target of 300,000 new properties a year."

HMRC said the transaction figures for April, May and June 2018 were provisional and therefore remain subject to revision.

rachel.addison@ft.com