Sales were at record lows last year, new data reveals.
Figures from property investor London Central Portfolio (LCP) show transactions declined by the largest number last year since the financial crash of 2008.
LCP’s analysis of Land Registry data show transactions fell by 3.7% annually in 2018 to 783,913 in England and Wales when London is excluded.
Sales in greater London were down 7.1% in 2018 to 86,869, while sales in prime central London fell to 3,514 – the lowest recorded, being 16.4% down on 2017 and 46% down on 2014.
Naomi Heaton, chief executive of LCP, said: “Whilst transaction levels have fallen ever since the introduction of Additional Rate Stamp Duty in 2016, undoubtedly the uncertainty around Brexit is having a far more punitive effect than increased buying costs.
“This negative sentiment has also spilled into the new-build market where growth in annual transactions is just 3.6%.
“With no positive news of late, coupled with the in-fighting within the parties and government, it is difficult to foresee any significant changes to current market sentiment.
“Unity and clarity would now go some way to restoring confidence not only to the property market but to all facets of UK enterprise.”
Separately, NAEA Propertymark reported that the number of properties coming to market increased per agent from 35 in November to 42 in December, the highest for the month since 2014, but sales fell.
The number of house hunters registered per estate agent branch also from 282 in November to 304 in December, up 13% annually.
However, the number of sales agreed per branch fell from seven in November to five in December, while the proportion of purchases by first-time buyers through estate agents was down annually by 32%.
Mark Hayward, chief executive of NAEA Propertymark, said: “The findings prove that despite the current political climate, people still want to move.
“There is movement in the market with demand from house hunters up 13% year-on-year, and the supply of available properties also rising.
“While many are adopting a ‘wait and see’ strategy until there’s further clarity over what Brexit might mean for the market, there is choice for those who want to buy now, and there are people in the market looking for new homes.”
Comments (7)
Four year high?? Not in this area, that’s for sure.
Seems like more scaremongering. Sales are at a low level, yes, but publicising this as a national problem is just going to have an adverse affect on the market.
Winds from the east, mist coming in, Like something is brewing and about to begin, Can’t put me finger on what lies in store, but I fear what’s to happen, all happened before.
Brexit or No Brexit the UK economy along with other world economies are slowly going Into a recession (Market Correction).
Stay focussed and just look out for the opportunities. The world will keep spinning and the fun fair will keep going.
Unfortunately this appears to be one of the early signs of a recession coming. Put doubts in people’s minds and worry them about the future…. and they stop getting on with their lives and stop spending money.
Did anyone doubt this would be the result of an increasingly threatened ‘no deal’?
I was wondering why sales were down . I thought that it might be something to do with £1.6 trillion of private debt in the UK, but no it’s because of Brexit!
Yes a first time buyer said to me yesterday he wasn’t buying a house because the UK was in so much debt… Not because he might lose 30% wen brexit kicks in.
Forgive them Lord for thry are nuts.
Fair point that first time buyers won’t care about the overall debt position of the country but if lenders won’t lend based upon their individual situation then it will affect the market. If there is a market crash in the UK and (most other countries), Brexit might be used as an excuse but not the real reason.