Introducer Today (Web): Property sales go from strength to strength
Tue 22 Sep 2015
Residential housing market activity defied the summer slowdown to post strong growth in August.
The latest HMRC Property Transactions figures for August 2015 show a 3.1% rise in the number of residentialsales compared to July.
The seasonally-adjusted figure is 5.7% higher than August 2014.
Peter Rollings, chief executive of estate agents Marsh & Parsons, said: Taking into account seasonal
adjustment, property sales are going from strength to strength, and showing great improvement from this timelast year.
With the spectre of higher interest rates being kept at bay, buyer demand is in full swing and summer sales havecontinued to blossom in August.
After slightly fewer home sales than we would expect in a typical July, buyers last month were showing a newenthusiasm and readiness to enter the market.
Rollings added: The changes to stamp duty are still washing over London and cooling activity at the topmosttiers of the housing market.
But overall demand for property in the capital hasnt waned, as young professionals and first-time buyerscontinue to seek out up-and-coming areas to put down roots.
The subsequent squeeze on available property for sale in the capital should keep pushing house price growthalong well into the autumn.
Jeremy Duncombe, director, Legal & General Mortgage Club, said recent CML figures show that gross mortgagelending is rising much faster than property transactions.
Market activity is relatively flat in volume, but increasing in value, highlighting the sheer impact of high houseprice inflation.
"The lack of supply is limiting the number of property transactions as there arent enough homes for people tobuy.
Meanwhile, high asking prices are forcing prospective buyers to borrow more money to afford their desiredhome.