Cooling for UK property market as house sales fell 10% last month from January 2021

Winter chill hits the UK property market after house sales last month fell 10% from January 2021 as nervous sellers avoid putting homes up for sale ‘afraid they won’t be able to buy’

  • House sales in January fell 10% from a year ago, HMRC has revealed
  • 106,990 transactions took place, 10.6% less than in January 2021
  • A temporary stamp duty holiday was in place last year, but ended in October
  • Asking prices in Britain rose by an average of £7,785 in February, according to Rightmove










House sales in January fell around 10% from the same period last year, according to figures from HM Revenue and Customs (HMRC).

In the UK, around 106,990 transactions took place, which is 10.6% less than in January 2021 but 5.1% more than in December 2021.

A temporary stamp duty holiday was in place last year, ending completely from early October.

Some experts have suggested deals were brought forward last year that might otherwise have taken place this year, so buyers can make the most of the tax savings.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “The January chill hit the property market, rapidly dampening buyer enthusiasm and freezing sales.”

In the UK, around 106,990 transactions took place last month, 10.6% less than in January 2021 but 5.1% more than in December 2021

“It takes 16 weeks from listing a property to closing a sale at the moment, so the drop in sales reflects a freezing October, amid the crippling impact of rate speculation. interest and at the end of stamp duty.

Earlier this week, real estate website Rightmove reported that home asking prices jumped in February by the biggest cash amount it has recorded in more than 20 years of reporting.

Rightmove said asking prices across Britain rose by an average of £7,785 in February to a new record high of £348,804.

Real estate group Savills also released research on Monday showing that nine in 10 (90%) people looking to buy a home believe a lack of available homes negatively affects their ability to make a purchase.

Earlier this week, real estate website Rightmove reported that home asking prices jumped in February by the biggest cash amount it has recorded in more than 20 years of reporting.

Earlier this week, real estate website Rightmove reported that home asking prices jumped in February by the biggest cash amount it has recorded in more than 20 years of reporting.

A lack of homes for buyers to choose from has been cited as one of the factors driving up home prices.

Tomer Aboody, director of property lender MT Finance, said: ‘A real shortage of properties on the market continues to drive prices higher, with multiple buyers per property on many occasions.

“At this time last year, buyers had the stamp duty holiday to spur them on; now there are fewer sellers brave enough to put their properties on the market because they fear they won’t be able to buy for themselves.

“Many are selling and moving into rented accommodation in order to put themselves in the strongest position of being cash buyers, which in turn also drives up rents.”

While they can find a property that suits them, buyers may find it easier to know the basics beforehand.

National Trading Standards announced this week that a property’s council tax bracket or rate and tenure information for sales must be included in property listings along with the price of the house.

The body, which works with property portals and others in the property industry, said information should be included by the end of May or flagged as missing.

Experts have suggested that having more transparent information could help reduce instances of failed home sales, helping buyers avoid wasting their money. It could also help speed up sales, it has been suggested.

Andrew Montlake, managing director of mortgage broker Coreco, said: “There are many red flags ahead in 2022, particularly with rising interest rates and soaring inflation, but lending rates remain exceptionally low and rents are skyrocketing.”

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Penny D. Jackson