But 12% drop in residential sales still leaves numbers above pre-pandemic levels

The number of housing sales fell by almost 4% in April and was more than 12% down on the number seen in the bumper period last year, according to the latest official figures.

HM Revenue & Customs (HMRC) figures for residential transactions in April showed that seasonally adjusted sales of 106,780 were achieved in the month, 12.1% down on April 2021 and 3.9% lower than in March.

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However, the figures remain higher than average April numbers prior to the pandemic, according to HMRC, with the seasonally adjusted number 5.8% above the average for the month in the seven years before 2020.

HMRC said that caution should be used in interpreting the figures given the “significant volitity” in the numbers in recent years, including the forestalling of transactions due to the stamp duty changes.

The figures come amid increasing fears of a slowdown in the economy hitting the housing market – but few signs so far of a significant impact, with Rightmove yesterday reporting prices up 2.1% and the Halifax this month reporting a tenth successive month of price rises.

Iain McKenzie, CEO of The Guild of Property Professionals, said the slowdown in property sales might not necessarily be a result of the economic slowdown, but instead a sign of a return to a more normal housing market.

“The volume of sales is starting to look closer to pre-pandemic levels now, which could eventually cool price growth enough to entice more people onto the property ladder.

“A reduction in the number of properties being sold was always expected, so it shouldn’t come as a surprise when we see slower months than usual, especially since March was a month of such high demand,” he said.

Lucian Cook, head of residential research at Savills, said the non-seasonally adjusted housing transactions remained 13% above the pre-pandemic average, and were yet to reflect the impact of the squeeze on household finances and increases in interest rates.

He said: “They show peoples reassessment of what they want from a home has continued to support housing market activity, even though the experience of lockdown has begun to fade into our memories.

“The pool of unmet demand among more affluent home-buyers, who are more insulated from the macro-economic backdrop than the average household, points to a slowing in the market rather than anything more dramatic, especially given the lack of stock available to buy.”

 

 

 

 

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