Press response to HMRC's property transaction statistics for May
Tue 24 Jun 2014
Peter Rollings, CEO of Marsh & Parsons, comments: "Weve moved into a new chapter of the housing market recovery. The story so far this year has been one of record-breaking house price rises, due to intense competition for available properties and a new wave of first time buyers climbing on the property ladder. But on a seasonally adjusted basis, total house sales have also fallen 3.5% in the month to May 2014. The impact of the Mortgage Market Review is still to be determined, but the introduction of tougher lending conditions has lengthened the approval process as the mortgage market adapts to this regulatory shake up and stabilises. Price growth is beginning to tail off as more property becomes available, offering buyers some welcome respite from the frenetic pace of the market and greater choice. This is also great news for sellers looking for their onward purchase, and will normalise trading conditions and boost activity levels.
"Were all waiting with baited breath to see Mark Carneys next tactic on the pitch. As an interest rate looms, lenders are increasingly cautious against higher risk mortgage loans, and implementing stricter affordability criteria to ensure that borrowing remains responsible. However the government and the Bank of England should be wary of taking their foot off the gas completely the London property market may be standing head and shoulders above the rest of the country, but further afield initiatives such as Help to Buy have been vital crutches helping the recovery get back on track."