Property sales were down by a fifth across the UK during March, and plunged by almost 30% in London.
New Land Registry data paints yet another gloomy picture of the market, showing that the number of transactions completed in March across the UK fell 20.3% annually to 73,977.
The biggest falls were in London where sales were down 29% annually to 6,180, and in the south-west with a 24% decline to 6,640.
Overall sales in England were down 21.8% to 58,203 on a yearly basis, while transactions in Scotland declined 16.1% to 7,861.
Northern Ireland recorded a 12.4% decline to 4,545 sales and the Welsh market fell 13.8% annually to 3,368 sales during March.
The Land Registry data also shows house prices growing at the slowest rate since August 2013, up 3% annually in May to £226,351.
This was a slowdown from the 3.5% annual growth recorded in April.
Average prices rose just 0.1% on a monthly basis to £226,351.
The largest annual growth was in the east midlands, with prices up 6.3% to £190,216 on average.
London saw the steepest annual fall with average prices down 0.4% to £478,853.
Commenting on the figures, Andy Sommerville, director at Search Acumen, said: “The slowing UK housing market has now effectively hit a brick wall.”
Jeremy Leaf, north London estate agent, said: “These figures are interesting, as this is the most comprehensive survey of UK house prices, and confirm what we have seen in others and on the ground.
“In other words, property prices cannot be sustained indefinitely by low stock and mortgage rates. Lower demand is forcing vendors to be more realistic, with fewer, more nervous buyers who are prepared to shrug off Brexit concerns.”
Would someone give these stats to the government who appear to have blindfolds and ear muffs on.
Think of the £ billions of lost revenue for them from vat and income/corporation tax from the multitude of property market connected businesses.
They need to wake up to the reality that, the total **** up of Brexit apart, their actions on stamp duty levels for the upper end of the market, the extra 3% on buy to let and second homes, and their bit by bit removal of tax relief for landlords, are massive spokes in the wheel of the property market.
Soon their unemployment figures will rise as, agents, solicitors, surveyors, mortgage companies and a host of other businesses related to and heavily dependant on an active property market, downsize their work forces
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I’m afraid all we will ever get from Government are crocodile tears. They really won’t mind a pre-brexit slow down and be delighted if it can be seen as inevitable and nothing to do with brexit.
I must admit that I have real concerns about this market and really do believe that brexit is a disaster (for the property market in particular) waiting to happen. The problems of 1988, 1997, 2001 and 2007 could be small in comparison with this slowdown.
There may however be one small light at the end of the tunnel – two actually.
Firstly, we may well see a steep decline in Wrongmove and Hoopla as agents bail out of these overpriced portals and move towards OTM, not only for the cost but also the security.
Secondly this and the changing market will see people less inclined to may a one off commission/fee for for nothing and come away from the call centre agents.
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Definite hard times to come – especially for inefficient mid sized, regional and national, high fixed overhead outfits with over paid non fee earning directors.
Nimbler, more flexible high service agents will come in to their own over the next year or two.
Low overheads; sensible commissions for providing a genuine expert local agent service and providing hand holding intervention is where the profits will be.
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One of the biggest problems with falling levels of properties for sale, is the number of people that ‘test the buying side first’. If they can’t find somewhere they would potentially like to move to, they decide not to put their own home up for sale.
Low stock levels are becoming self fulfilling….it feels as though we are now entering almost a ‘Perfect Storm’.
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Seems to me we’re always on the wrong side of the headlines, ” market buoyant agents booming ” we cant buy a sale or a listing,
” market on its knees closures imminent ” and as I type, we’re flying..
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Same here. Pipeline up 35% on last year. Something is going right – but for how long??
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Pipeline £85k
Costs pcm £7500
Comfort level = ok
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Dream on !
2/3 competent members of staff alone, never mind the rest of the costs to operate a half decent business will eat those costs in no time.
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Seems to be following the same pattern as 2008 only much longer and slower. London, then south east, now rippling further afield. Current hot markets will probably be having a “WTF!” moment by early next year I suspect. I’m sure a number of agents have a rainy day fund, but rather fewer a rainy month fund.
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Our pipeline is the highest its ever been (very slow coming through though) and properties are selling within hours!?
I genuinely think”national” figures should always be separate and ignore the London “bubble.”
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Does any of you read what it says or do you just comment on the doom it says house prices only went up. By 3% in over the year I would like 3% on my money last year when I tried to sell my house to HBF just before we signed contracts I was told that my house price had fallen by £10000 in two months can some bright spark tell me what percent that is on£185000 over a year my house would have been worthless house prices are rising but not by so much that is a good thing for buyers but not so good for sellers correct.dont just comment on the headlines read it all.
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Woodie0636
I read your earlier post, on ‘The Arena’, with interest.
May I suggest you make contact with our dear host here on EYE, Editor Rosalind Renshaw. Her contact details are listed here
propertyindustryeye.com/contact-us/
and believe me, if it appears there is anything untoward going on we’ll make one helluva song and dance for you!!
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Woodie0636
I note that this very issue got a (brief) airing in the Commons yesterday.
Your time to get publicity could be coming sooner than you thought…
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Choppy waters for the next couple of years I fear. Exceptional (not full) service agents will prosper provided they charge a sensible and reasonable fee.
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Stock levels highest they have been in years also pipeline.
We have noticed other agents struggling, but this is always the case. Some agents try and buy the market which lead to problems.
I for one welcome a tougher market, sorts the boys from the girls.
As said in a post above, they should separate Londond from the rest of the country,
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Surely you mean “the men from the boys” as I’m sure you’ve no intention of being sexist…
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The very best negs I’ve ever worked with have been girls, I’m on their team
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Great negs, just don’t let them work together!
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