Property transactions fell 35% in a month, says HMRC.
Property sales suffered a considerable decline.
The number of homes sold in the UK fell by more than a third between March and April, according to the latest HMRC real estate transaction data release. Despite being the largest number of transactions in April since 2007 with 117,860 homes sold, this was a 35.7 percent drop from the previous month.
However, the figure was still almost 180 percent higher than at the same point a year earlier.
The development follows last week’s announcement by the Office for National Statistics that the median price of a house in the UK had risen 10.2 percent between March 2020 and March 2021.
Industry feedback on the numbers about property transactions was mixed, with some praising the market’s strength, while others warning of a drop in activity after the Stamp Duty holiday ends.
This is how the industry reacted to the decline in property transactions.
John Eastgate, managing director of Property Finance at Shawbrook Bank, said fears of a boom-bust cycle were misplaced.
He added: “The long-term forecast for housing remains positive. There are still opportunities for buyers and investors who have available capital and are eager to move. The urban centers that appear to have fallen out of favor in recent months are still showing promise as we return to the office and return to a level of normalcy.”
Others were similarly bullish. Sam Mitchell, Strike CEO, said: “However, with the June deadline not much left, the countdown has officially returned and the pressure is mounting. Combined with the 95% increase in mortgage offers being offered, coupled with the continued relaxation of lockdown restrictions, demand within the UK property market is likely to amplify in the coming months.”
They added: “Some might be cautious with the stamp tax deadline fast approaching, but there are no signs this will derail the market. In fact, with a drawdown period through October, low inventory levels, rock-bottom interest rates, and the introduction of the government’s high-value loan scheme, there are more than enough factors to keep things optimistic.”
Search Acumen director Andy Sommerville voiced a more cautious tone. He said there was a “fragility” in the UK property market. He added: “Concerns about whether activity levels will continue after the stamp duty holiday ends are increasing.”
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