Sales of homes in the UK increased by 1.3% between June and July 2017, some 8.3% higher compared with the same month last year, the latest official figures show.
This is around the same level as in July 2015, the data from HMRC shows but the last year has been a turbulent one for the economy which is intrinsically linked to the nation’s housing market.
The residential market has been affected by the decision to leave the European Union, the official beginning of the Brexit process and the snap general election earlier this year.
However, HMRC says that caution should be used making comparisons of transactions between July 2017 and July 2016 due to political and economic changes.
Experts agree. Andy Sommerville, director at Search Acumen, said that viewing the uplift in property transactions as a turnaround in the market would be a position of false confidence and in fact the market has returned to the same levels as 2015.
While the property market has not crashed, as some were predicting before the referendum vote in June 2016, Sommerville believes that there are too many hurdles in the way for first time buyers and prospective buyers and sellers to create a winning housing market.
‘There is a critical lack of supply which continues to drive up prices to unreachable heights for many. The Government needs to start building if it’s to see a fluid property market emerge once again,’ he said.
But Jeremy Duncombe, director of the Legal & General Mortgage Club, pointed out that the property market is unlikely to grind to a halt, as low interest rates continue to keep demand high.
‘Ultimately the Government needs to address the ongoing issue of supply. We need a long term solution by building more homes allowing a greater number of affordable properties to come onto the market. This will not only provide more choice for second and last time buyers, but also free up additional housing stock for first time buyers to secure home ownership,’ he said.
The recent political and economic upheaval in recent months has plagued the property sector, so the increase in sales could be an indication that buyers and sellers are beginning to feel more confident,’ according to Danny Waters, chief executive officer of Enra.
‘While it’s true that certain areas of the property market have had a troubling few months, others have flourished. The bridging sector, for example, has gone from strength to strength in recent months and this most likely a result of borrowers seeking alternative financing options,’ he explained.
‘What’s important now is that those looking to make a purchase are aware of the range of loans available to them, including the ones that offer the greatest flexibility in such uncertain times,’ he added.
