Property market 'flattens out' in June: HMRC
Mon 21 Jul 2014
Property market 'flattens out' in June: HMRC. The property market saw a 'flattening out' in June, although it is still much higher than 2013 levels, according to the latest data from HMRC. The seasonally adjusted estimate of the number of residential property transactions decreased by 0.2% between May 2014 and June 2014. This month's figure is also 15.7% higher compared to the same month last year. The trend since the beginning of 2013/14 has been of a general month-on-month increase in transactions until February 2014, where there is a gradual decrease followed by a flattening out of transaction numbers. Figures showed 93,690 residential transactions were completed in England during the month, this compared to 9,370 in Scotland, 4,500 in Wales and 2,020 in Northern Ireland. Peter Rollings, CEO of Marsh & Parsons, comments: "The UK property market is singing a different tune to that heard at the start of this year. The fierce competition for properties and unprecedented house price growth has subsided as a new wave of supply has come onto the market, stabilising price rises and restoring normality to trading conditions. Both buyers and sellers alike are benefitting from this new calmness in the market, with a greater array of available property to choose from and slightly slower pace of activity making stepping onto the ladder or trading up a less daunting prospect. "The implementation of tighter lending criteria and affordability checks has lengthened the borrowing process and cooled the market during this transitional phase. On a seasonally adjusted basis, house sales have dropped 0.2% in the month to June 2014. But taking a longer term view, the housing market recovery is still gaining strength, with sales up 15.7% in the past year. This wave of regulatory change will ensure lasting sustainability and responsibility of growth, but the government and the Bank of England need to be careful that future interventions are not premature and over-zealous. Beyond the capital, the housing market recovery still requires a watchful eye."