News

Land Registry revealed 'House sales plunge nearly 20%'

30 July 2012

Based on the most current data from Land Registry, housing transactions plunged by almost 20%, average prices in England and Wales on the other hand, went up by a 0.1% whisker.

The average house price in June stands at £161,777 - up very slightly on the month before and 0.9% more than last year in June.

The transaction data from the Land Registry for April - the most up-to-date available - signifies that there were merely 41,244 house sales, lower from 50,721 in April of 2011, a drop of 19%.

While the Land Registry house price figure is influenced yet again by London house prices, a separate report by Hometrack reveals that in July, the downturn has eventually struck the London market.

This morning, Hometrack asserted that while London was the only real region across the country to register a house price increase in July, this was just 0.1%. Moreover, demand fell in London, with new applicant sign ups down by 2.4%, as opposed to a national dip in demand of 2.1%.

As per the Land Registry, in June London prices increased 6.3% over the last year and 0.2% throughout the month, to remain at an average of £359,476. In contrast, house prices in Yorkshire & The Humber were 0.3% down over the month and 1.9% down over the year.

However, as per the London Registry, the housing market in Wales has encountered the best monthly growth, at 2.5%, pursued by the North-East (1.7%), West Midlands (1.4%), and the North-West (1.1%).

The most recent transaction data - covering January to April this year - in addition indicates an upturn. There was an average of 47,242 sales each month in this period, weighed against 43,686 a month throughout the similar period last year.

Having said that, transactions in April itself dropped. Sales volumes in each single price bracket dropped other than in the £800,000 to £1m range, in which they increased by just 3%.

A number of the steepest drops were in first-time buyer terrain, where transactions fell 20% in the £100,000 to £150,000 bracket, and by 25% in the £151,000 to £250,000 bracket. April was the first full month since the Stamp Duty holiday for first-time buyers concluded.

Visibly too, in April, the first full month since Stamp Duty increased to 7% on £2m-plus properties, the number of homes selling for this amount dropped by 40% weighed against April 2011, standing at 114 transactions against 191.

However, the impact of the Stamp Duty hike remains tough to evaluate since sales of £1m-plus properties furthermore dropped, and by a lot more: by 41% in the £1.5m-£2m price bracket, and also by 48% in the £1m-£1.5m bracket.

While the Land Registry revealed a little upturn in average house prices in June, Hometrack claims a slight decline - of 0.2% -, which it states, is the first fall this year.

Director of research at Hometrack, Richard Donnell, stated that while buyer demand has dropped, levels of supply continue to rise.

He stated: “The gap between supply and demand is set to widen over the summer months and points to further modest price falls through the summer and autumn.”