Property sales fell in August but UK housing market still proving resilient

Residential property sales fell by 0.5% between July and August this year but were 6.6% higher than a year ago and around the same for the month of August in 2015, official figures show.

The data published by HMRC also shows that non-residential property sales decreased by 2.1% but were 1.8% higher compared with the same month last year.

The report suggests that caution should be used making comparisons of transactions between August 2017 and August 2016 as some buyers may have changed their behaviour as they considered the result of the June 2017 general election, and the European Union referendum in June 2016.

Meanwhile figures from the Land Registry show that it completed 1,671,900 applications in August with the South East having the highest regional number at 392,737 and Birmingham this most by local authority area with 25,179.

Of the total some 394,119 were applications in respect of registered land, 774,442 were applications to obtain an official copy of a register or title plan, 229,895 were searches and 81,156 were transactions for value.

The figures are encouraging, according to Doug Crawford, chief executive officer of My Home Move, despite the slight dip in transaction volumes. ‘The noticeable uptick in activity compared with the same period 12 months ago shows that despite all odds, the property market is broadly weathering the political storm which continues to rumble through the UK,’ he said.

‘The market is fundamentally strong and this stability is testament to its resilience. However, demand still considerably outweighs supply, and the bottom line is that we are not building enough homes to support our country’s growing pool of prospective first time buyers with knock-on effects for second steppers,’ he pointed out.

‘Despite recent lulls, prices continue to rise faster than wages, and without action to address tightening affordability, there is a risk that hopeful homebuyers without access to the Bank of Mum and Dad will find themselves barricaded out of the market,’ he added.

Stephen Wasserman, managing director at West One Loans, believes that widespread speculation about when a base rate rise could be affecting the property market. ‘However, we are confident that the sector will show its much admired resilience, especially from an investor perspective, over the coming months due to the fundamental supply and demand mismatch in this country,’ he said.

He warned that with the UK set to leave the EU in March 2019, there is going to be a lengthy period of uncertainty. ‘But we are hopeful that the property sector can provide continued stability for investors and consumers alike,’ he explained.

‘As the market picks up again it is crucial that investors understand all the financing options that are available to them, which includes specialist solutions such as bridging loans, a sector which has seen solid growth in the second quarter of the year,’ he added.