The latest figures from HMRC show a marked drop in property transactions.
The provisional unadjusted estimate for the number of UK residential transactions in April 2023 is 67,220, 32% lower than April 2022 and 29% lower than March 2023
The provisional seasonally adjusted estimate of the number of UK residential transactions in April 2023 is 82,120, down 25% from April 2022 and 8% below March 2023.
HMRC points out that the month-on-month decline in unadjusted and seasonally adjusted transactions from March to April looks particularly significant. This, he says, is partly due to the relative strength of Mars.
The number of transactions in March was high due to a combination of factors, including more working days compared to April and the last month for purchases to be made under the government’s aid program. purchase of equity loans.
Jeremy Leaf, London estate agent and former chairman of residential RICS, says youThese numbers are not particularly surprising as they relate not only to the improvement in activity since the start of this year, but also include the period immediately following last September’s mini-budget when many hit the pause button. for several weeks.
“There is no doubt that reduced competition for real estate will result in transactions, which are a better indicator of market health than more volatile prices. Sales take longer and there is not the same urgency that we have seen before.
“Looking ahead, we expect some ups and downs keeping in mind the worsening expected inflation data released last week.”
Tomer Aboody, Director of Home Loans at MT Finance, says: “With rates still rising, this adds further uncertainty as buyers are unsure whether to wait or make a move.
“With trades trending down, stimulus is needed to encourage sellers to come into the market, and downsizers in particular.”
“With a general election 18 months away, this would be a good way for the government to revive the economy and revive the property market.”
Livemore’s Managing Director of Capital Markets and Finance, Simon Webb, comments: “Real estate transactions continue to fall after a monthly rise in March, mainly due to more working days compared to February and April.
“The downturn is expected to continue as economic uncertainty, high cost of living and rising mortgage rates will deter some people from moving. Until inflation returns to more acceptable levels and the Bank’s base rate drops, we expect 2023 to deliver a subdued housing market.
Jackson-Stops President Nick Leeming suggests that the volume of home sales we’re seeing now is a continuation of the twists and turns of the past three years.
“Although transaction levels have become more subdued in recent months and borrowing has become more difficult at the bottom of the market, mortgage lending continues and those who need to move will continue to do so.”
He adds: “A rebalanced, more egalitarian market that does not play favorites is a market that will be more resilient in the long term. While sellers remain in a strong position, able to order far more for their homes than would have been thought possible before 2020, it is now buyers’ turn to operate on a level playing field.