Transactions in May fell 33.5% year on year in England to 49,795 and they were down 29.6% in Wales at 2,596.
Figures for London were even more drastic, down 46% year on year for May to 5,111.
May is the last month for which the new Land Registry/ONS house price survey has transaction figures. However, it did also say that sales volumes fell 0.9% in July compared with June.
On house prices, the survey showed the east of England continuing to outperform the rest of the country as price inflation slowed yet again in July.
Figures for July show annual price increases of 8.3% which takes the average property value in the UK to £216,750.
The annual growth rate is down from 9.7% in June, yet regionally the east of England registered a 13.2% boost to £273,806.
This outpaces annual house price inflation in London where prices rose £484,716 in the year to July.
Andrew Bridges, managing director of Stirling Ackroyd, said the Chancellor should consider scrapping George Osborne’s Stamp Duty changes to boost the London market.
He said: “Those working in the capital are now looking to the east and south-east of England for more affordable homes, which is why these areas are also seeing double digit growth.
“Rising prices are being fuelled by the ongoing shortfall of properties on the market – there are simply not enough people selling or enough new homes being built to match demand.
“As the Government falls well behind in achieving its target of 1m new homes by 2020, Philip Hammond will need to introduce radical new policies in his Autumn Statement if he hopes to get Britain building again.
“The Chancellor should consider scrapping Osborne’s Stamp Duty hike which continues to cripple the top of the market, reducing the incentive to sell homes in London and further pushing up prices.
“Summer may be coming to an end, but perhaps it’s time for a holiday – a Stamp Duty holiday to get the market moving.”
Jonathan Hopper, managing director of Garrington Property Finders, said: “On the front line we’re seeing strong intent, but a lack of market clarity is disconcerting for buyers.
“However, many who equivocated in the run-up to the Brexit vote are finding that the fence is starting to hurt, and are finally getting off it.
“Fired by the realisation that in many areas it is becoming a buyer’s market, many are asking for substantial discounts in return for the certainty of a sale.
“The dust has yet to fully settle, but there are growing signs that the combination of low interest rates and buyer confidence is helping Britain’s property market to take much of the Brexit effect in its stride.”
A few months ago there was a report ( from memory cml) saying mortgage approvals for first time buyers was up to the highest level since 2008.
So as much as those in the industry want the stamp duty surcharge reversed. its unlikely to happen if government policy advisors is reporting that the stimulus of helping homeownership is working.
The hard facts is that since the stamp duty changes in April, landlords have all but gone missing. SO as much as I hate it, it has worked in helping first time buyers.
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Agreed, the BTL investors seem to be MIA, but I haven’t suddenly been deluged by FTBs desperate to buy the properties I would have sold to them.
I’m sure this is regional and depends on your average price, but a lot of my FTBs buy at a price point above the BTL guys and girls.
So, all it’s really done is damage the bottom end of the market here on the south coast.
Not very happy at all!
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People are comfortable, spending on holidays and meals out, many homeowners who need more space are now extending hence builders are as busy as they have ever been. Nearly every other valuation I do is “We are thinking of extending” I always sound rude when I bark, but I’m not a builder so why have you called me out.
The what was once a 7 year move cycle seems to be slowly but surely turning to the 15 to 20 year cycle…….. and generation rent is creeping in…. disposable income used to be thrown in to increasing your mortgage and moving up market but now….. costa coffee, prosecco and sunnier climates are clearly more favoured.
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A considerable proportion of my housing stock are bungalows.
I get older people registering to buy them all the time, but they don’t stand a chance.
The younger generation will buy them and extend in 5 or 6 years time when they need a bigger house.
Perhaps it’s worse here than other areas, but the number of properties selling every year is just over 60% of it’s pre-credit crunch average.
Given that the cost of moving is about £15k around here – you might as well just do an extension and stay where you are.
Whilst the government isn’t getting all of that lovely stamp duty land tax, they are getting the equivalent amount as VAT on the construction work, so they’re not bothered!
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“disposable income used to be thrown in to increasing your mortgage and moving up market but now….. costa coffee, prosecco and sunnier climates are clearly more favoured”
That made me laugh out loud – so true!
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The figures clearly suggest that FTBs have not stepped in and filled the void left by the BTL investor. Where an investor had specifically bought a yield property he now finds himself with no buyer. There are 2up2downs all over the country that were only ever going to appeal to a BTL audience. Great yield no chance of capital growth. FTB’s were never going to suddenly start buying them up. Naivety from the government again. They failed to recognise as did a number of supposed experts that they weren’t necessary going after the same properties. As evidenced last year when Countrywide analysed FTB involvement in investor purchases and found in 2/3rds of cases there was none.
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