National Association Of Property Buyers Warn: Falling Property Transactions “Deeply Concerning”
London. UK- 05.24.2023. A row of apartment to let sign from a number of estate agents outside a block of flats.
DATA showing a fall in property transactions are “deeply concerning” a leading association has said.
Stats released last week show the number of property deals being recorded continued to fall in October
The HMRC data shows how non-seasonally adjusted residential transaction figures hit 90,920, down 17% year-on-year and a fall of 2% from the prior month.
The stats shows seasonally adjusted residential transactions hit 82,910, a fall of 21% compared to last year and 3% down on September numbers. There were around 10,280 non-residential transactions, up 5% on October 2022.
Commenting on the figures, Jonathan Rolande, from the National Association of Property Buyers, said: “Looking back at the past year, many of the key ingredients were in place to prompt a rapid reduction in house prices. These included multiple bank rate increases, shortage of stock, affordability hit by inflation and more.
“Yet prices have remained surprisingly stubborn. Part of the reason for this is the shortage of property coming to the market. One reason is because many landlords are holding rather than quitting the market thanks to high rents and a hope that prices will hold up longer term.
“Bank forbearance and more sensible lending has prevented the mass repossessions of the 90’s. Those that do not have to sell are staying put and this shortage has supported prices.
“It is the lack of transactions, rather than deflation that is deeply concerning. A lack of fluidity in the market is bad for almost everybody – sellers, buyers, lenders, estate agents and even the Exchequer who’s Stamp Duty take will be hit.”
