HMRC: Transactions inch up in August
In August there were 106,480 residential and 10,880 non-residential transactions, but on a non-seasonally adjusted basis transaction levels fell by 7.4% from the month before.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Market activity is relatively flat in volume, but increasing in value.
“HMRC’s figures are disproportionate to the increase in gross lending shown by the CML’s figures, highlighting the sheer impact of high house price inflation.
“The lack of supply is limiting the number of property transactions as there aren’t enough homes for people to buy. Meanwhile, high asking prices are forcing prospective buyers to borrow more money to afford their desired home.
“Ultimately, the source of both of these issues is the lack of supply which is falling well short of demand.”
Compared to August last year transactions levels rose by 5.7% on a seasonally adjusted basis.
Peter Rollings, chief executive of Marsh & Parsons, said: “Taking into account seasonal adjustment, property sales are going from strength to strength, and showing great improvement from this time last year.
“With the spectre of higher interest rates being kept at bay, buyer demand is in full swing and summer sales have continued to blossom in August.
“After slightly fewer home sales than we would expect in a typical July, buyers last month were showing a new enthusiasm and readiness to enter the market.”
He added: “The changes to stamp duty are still washing over London and cooling activity at the topmost tiers of the housing market.
“But overall demand for property in the capital hasn’t waned, as young professionals and first-time buyers continue 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 growth along well into the autumn.”