UK property sales unchanged year on year and up only marginally on monthly basis

Residential property sales in the UK increased by 1.3% between December 2017 and January 2018 and were 0.1% lower compared with the same month last year, the latest official figures show. There were 102,610 residential sales and 10,780 non-residential transactions, according to the data published by HMRC, unchanged from a year ago and rising only marginally on a monthly basis. Overall sales have been stagnant and experts believe it is a sign that there is just not enough properties for sale. Richard Sexton, director of e.surv, said that the limited housing supply is acting as a roadblock. ‘While the Government has certainly shown a clear commitment to helping first time buyers onto the property ladder through the exemption of stamp duty, we still need to see greater initiatives resolving the supply side of the problem,’ he explained. ‘By working more collaboratively with developers and local authorities to build more affordable housing, this will hopefully provide the Government with the support needed to create a long-term plan for housebuilding,’ he added. The limited housing supply continues to impact on the opportunities for buyers to move onto or up the property ladder, or even downsize in later life, according to Craig McKinlay, sales and marketing director at Kensington Mortgages. ‘Although we are on the right path, and a growth in first time buyers and more sustainable rises in house prices are to be welcomed, we still need an ambitious, long term commitment to housebuilding from the Government if we are to resolve the supply crisis for the next generation of home owners,’ he added. However, it should be noted that seasonal factors affect the figures, according to Shaun Church, director at mortgage broker Private Finance, and given the current political and economic uncertainty, the fact the market is holding steady should be appreciated rather than taken for granted. ‘There are positive signs of life in the first time buyer market, with the number of new buyers taking out a mortgage in 2017 hitting an 11 year high. The removal of stamp duty and growing number of competitive mortgage deals aimed specifically at this market indicates first time buyer transactions should experience some growth in 2018,’ he pointed out. ‘Other areas of the market, such as the buy to let sector, are struggling to play catch up, with tax and regulatory changes still having an impact. While new buyers are now benefitting from lower house purchase costs, those further up the property ladder have been left out in the cold. The high cost of moving means many existing home owners will choose to improve, not move, resulting in sluggish activity further up the property chain,’ he said.