Transactions across the UK in October were down 3.3% on the month before and down 18.8% on October last year.
According to Spicerhaart, releasing figures based on data from haart branches, transactions – counted as exchanges – were down even more in London, by over 20% year on year.
New buyer demand was also down across the UK last month – by 22.4% year on year, and by 2% on the month.
The number of properties coming on to the market fell 5.3% between September and October, and by 6.1% on the year.
Prices, both nationally and in London, bounced up in response to the shortage of supply.
In London, the average price of a property sold subject to contract was £548,668 – 5.7% up on September, and 7.6% up on an annual basis.
Across the country as a whole, the average UK house price was up 0.5% on a monthly basis, and 1.5% annually. According to haart figures, the average UK house price (again, SSTC) is now £227,566.
Notably, this is considerably below Rightmove’s new asking price average of £305,670, and also well under LSL’s average sale figure of £294,351 – see story above.
Paul Smith, CEO of Spicerhaart, said: “The nation’s property market is suffering from the ongoing confusion around Brexit and what it will mean for our economy.
“Home owners are experiencing a crisis of confidence, with sellers either holding out for better offers or keeping their properties off the market altogether.
“A Brexit courtroom drama has hardly helped the situation. The Government must set out a clear plan for Brexit to help buyers and sellers feel confident and to get house-builders building again.
“In London, which voted heavily in favour of Remain, the problem is particularly acute, with the number of new properties on the market down by over 10% on last month, and transactions down by over 20% on last year.
“The current supply shortage has seen a jump in London prices compared to last month, but unlike normal times this isn’t a sign of a ‘hot’ active market. It is a blip undermined by the fall in transactions – in reality, nobody is winning in the current market.
“The ‘psychology of Brexit’ is holding the market back, and the Government must act to avoid this dip becoming a long-term problem.
“The Autumn Statement is the Government’s opportunity to relieve the pressure. Philip Hammond must look to cut Stamp Duty, especially at the bottom end to help ‘generation rent’ make their move on to the property ladder, which will increase fluidity in the market.
“We also need to see new incentives to ensure house-builders continue with planned projects and increase their pipelines to get Britain building again.”
According to Spicerhaart, the lettings market is much healthier, with a 28.6% yearly increase in transactions across the UK.
However, it said that the number of tenants entering the market fell 2.6% on the month and by 13.4% annually.
The referendum and vote result also appear to be biting deep into the retail market with results recently from Next, M&S, Sainsburys etc. We need a real ‘confidence booster’ stimulus before people stop spending and ‘making decisions’ to such a large extent that it drives the country into deep recession.
What are the chances that that is what we will get in the autumn statement? Can our politicians see the same things that we can on the ground …from inside their bubbles?
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Add Brexit into the mix with that old ten year cycle…..and it’s all going to go “pop” next year.
Prices have been pushed to unsustainable levels by greedy sellers and overpricing agents. Think back to 2007/2008, prices weren’t as high then, mortgages were easier to come by and we didn’t have the extra costs on buying a second home or a buy to let. Brexit will just make it all even worse.
The writing’s been on the wall all year. Smell the coffee chaps
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“Fromthehip64” – prices are going nowhere much – up or down – next year – where were you in 2007/8 the average SVR then was nearly 8% – four times what it is today. Forget all the rhetoric about “price” experience and history shows what really matters is the actual cost of ownership.
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In our area prices were fairly stable from late 2009 until mid 2013, with hardly any rise. Then the ‘powers that be’ decided to encourage more demand by introducing the schemes that would help first time buyers (which we were all in favour of) at the same time as the implementation of new mortgage rules to limit supply (by making it a much more onerous process for existing homeowners to move…even sideways). So higher demand…less supply… and three years later we have had a 25% increase in prices and stock levels of available properties diminishing by the day. As I have said before a great example of ‘joined up thinking’.
It might be different in your area, but in my experience ‘overpricing by agents’ usually achieves one thing….very few viewings and no sale…. unless the supply is so low that buyers have little choice.
There is lots that can be done to change the situation and alleviate the problems, but it requires imaginative thinking outside of the box, something that the ‘powers that be’ don’t particularly shine at.
Lets see if they even recognise the existence of a problem in the autumn statement!
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“According to Spicerhaart, releasing figures based on data from haart branches, transactions – counted as exchanges – were down even more in London, by over 20% year on year.”
Is this really a true indication of market conditions or simply that Spicerhaart are losing market share?!
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