HMRC reports uptick in residential property transactions

June 21, 2018 / Isla MacFarlane
HMRC reports uptick in residential property transactions

According to the latest data from HMRC, for May 2018 the number of non-adjusted residential transactions was about 12.1% higher compared with April 2018.

The seasonally adjusted estimate of the number of residential property transactions increased by 0.8% between April 2018 and May 2018. This month’s seasonally adjusted figure is 0.5% lower compared with the same month last year. The number of non-adjusted residential transactions was 1.0% lower than in May 2017.

Nick Leeming, Chairman at Jackson-Stops, commented, “The latest figures show transaction levels are down on the year and that there has been a modest lift in activity between April and May. This begs the question as to whether the unusually slow start to the year was indeed a sign of a more steady rather than booming market for the rest of 2018. However, with the Bank of England likely to vote to hold interest rates, this should give the market some encouragement.”

Neil Knight, Business Development Director of Spicerhaart Part Exchange & Assisted Move, added, “While we are still nowhere near the levels we were seeing before the credit crunch – when the number of transactions had risen constantly over a number of years to reach a peak of around 150,000 per month – it is a marked increase, and could suggest we will start to see a bit of an uplift, especially in the new build sector.

“In fact, last week’s construction output figures from the ONS show that while overall, construction output between February and April 2018 was down compared with last year, new builds bucked the trend with a 4.4% annual rise.

“We are currently working with a range of housebuilders that have got lots of big developments in the pipeline. The focus on new housing over the past few years – with incentives such as Help to Buy – is starting to boost the new build sector, and while we are unlikely to hit the Government’s targets, we are at least moving in the right direction, and this should help boost the rest of the property sector too.”

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