Annual property transactions in the year to May have fallen by 11.3% as political uncertainty continues to manipulate the property market.
89,810 residential property transactions were completed in May. This also represents a fall of 6.4% when compared with April’s transactions.
Similarly, non-residential property transactions have also struggled in May as the 10,090 transactions represent a 0.8% fall from April’s figures and an annual decrease of 3.7%.
Adrian Moloney, Sales Director at OneSavings Bank, said:
“Political uncertainty remains a key drag on the market overall, affecting sentiment and decision-making, with London especially experiencing a slowdown in transactional activity.
“We’re seeing both buyers and sellers putting their plans on hold. Once the political details are clearer, we’ll have a degree of certainty which could trigger a flurry of activity.
“Houses are on the market for longer than we have seen in recent months, and with the summer holidays coming up, this trend is likely to continue.
“Landlords with established portfolios may seek to take advantage during this uncertain patch. As house prices are driven down, this will present active buyers with opportunities.”
Tomer Aboody, Director of MT Finance, commented:
“It is no surprise that sales volumes are down on the past year given all the political uncertainty combined with the fall-out from additional stamp duty on second homes that the market has had to deal with.
“While stamp duty hikes slowed the market down as expected, it failed to result in a big uplift in first-time buyers as they continue to face affordability issues.
“With this back drop, developers are reluctant to push forward with developments, preferring to sit on plots with planning until they can see a convincing upturn.
“The steady trend in non-residential purchases can be attributed to the fact that there has been no additional stamp duty.
“Multi-let units are providing yield to investors in a market with low interest rates, so this is proving to be a sensible asset class for investors.”
Have conveyancers noticed a reduction in transactions last month? Will transactions continue to fall until a clear Brexit outcome is reached?
