Transactions plummeted in most of the UK last month, new HMRC data shows.
Its figures shows sales in Northern Ireland were down 17.1% on a monthly basis to 1,880, while England saw a 13.6% drop to 72,500 and Wales was down 12% to 3,930.
Scotland was the only region of the UK to see a bump in sales between March and April, up 1.9% on a monthly basis to 7,890.
Annually, sales in England were down 2.1%, Scotland was down 1.9%, Wales saw a 2% fall while Northern Ireland actually saw a 3.8% boost.
On a non-adjusted basis across the UK, this took transactions down 12.5% on a monthly basis to 86,200, and 2% lower annually.
In comparison, at this point last year, sales were down 16.7% on a monthly basis and up 19.5% annually.
Commenting on the data, Neil Knight, business development director of Spicerhaart Part Exchange & Assisted Move, said: “The latest HMRC non-adjusted figures show that there has been a drop in house sales compared to last month and compared to this time last year.
“A drop in housing transactions can be a sign of a downturn in the housing market as a whole, and we have seen asking prices drop in some areas.
“However, I don’t think we should read too much into it, as the market is still up on where it was in January and February.”
Problems yet to come. Stamp duty and strict mortgage criteria is the issue.
The price correction and market adjustment is taking place.
Nothing to worry about, just hang on in there.
Price it right, educate sellers and work closely with buyers.
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everyone sing with me….There may be trouble ahead
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This is going to be worse than 2008…….We are at 0.5% interest rates, yet again the great British public have thrown caution to the wind and feasted on ‘free money’ for 9 years and now racked up the same, if not worse, consumer debt than 2008.This time though, there won’t be interest rates to balance the books.
Chuck in a good measure of Government Help to Buy, where, in essence the government helped people who should not be buying houses, to buy houses. Many are trying to re-mortgage but can’t and I’ve been advised on good authority that there is greater incident of mortgage default from people who bought with help to buy….Oh and its interest payment time on those first lot on loans this year…….which will rise year on year.
How, I MEAN HOW, could house price growth have been sustained at the ridiculous seen in the SE in the last 7 years? which has been fuelled by both factors above-HTB and interest rates.
I agree vendors need educating and I’m education mine, not that they want to listen, yet. Ultimately though, they are going to end up with less for their houses in 6 months than taking a hit on price now. I have had two incidents now in a month of lenders pulling mortgage offers as a ‘human being’ has picked up the applicants file (instead of the computer who said ‘yes) and deciding affordability is not there, last time this happened was, oh yes….2008.
Lets revisit this in a year and see where we are as I can see history repeating itself , but this time the bank of England or the government is going to have to pull more than loans to buy and low interest rates to save it…….Good agents survive crashes but my god this will be painful.
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And on that cheery note……….
I think lack of supply has caused huge growth in prices in our area in the last four years. Unfortunately a lot of supply problems appear to be around the Mortgage Market Review and affordability rules. There are many people that would move sideways for jobs or family, but they can no longer easily port a mortgage from one property to the next.
Add into the mix people not putting their properties up for sale until they see something they might like to move to, and others not contemplating moving because of the costs involved….and we have a ‘Perfect Storm’ for decreasing stock and further inflation of prices.
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Hi AgentV,
I agree with you entirely as I am in that very boat. Having been in a property for the last four years I am desperate to move nearer to my job and family, but due to the changes in mortgage affordability rules I ‘can’t afford’ a lower monthly payment on a cheaper property. This is despite never missing a payment on my exisiting mortgage.
My options are either to downsize considerably (which isn’t really an option due to expanding family), or stay put, paying more than I need to on the mortgage itself and in travel costs.
In one year we need to factor in the interest from the HtB loan we took out, and suddenly we really are in a difficult position!
Crazy situation really.
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>Annually, sales in England were down 2.1%, Scotland was down 1.9%, Wales saw a 2% fall while Northern Ireland actually saw a 3.8% boost.
That’s nothing really.
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