HMRC June property transactions
Revealing the monthly estimated figures for both residential and non-residential property transactions, HMRC property statistics for June 2017 have been published today (21/07/17).
Showing data for the UK and its constituent countries, the publication is based on data from both the HMRC’s Stamp Duty Land Tax (SDLT) and the Scottish Administration’s Land and Buildings Tax (LBTT) databases.
For June 2017, the provisional seasonally-adjusted UK property count was 96,910 residential and 9,800 non-residential transactions.
On a seasonally adjusted basis, the estimate fir the number of residential transactions dropped by 3.3% between May 2017 and June 2017 – the same fall as the previous month. The seasonally adjusted figure is 1% greater than the level recorded in the correspondent month last year.
Given the unusually low level of transactions during April 2016, however, this went on to impact the number of transactions of June in the same year. Due to this, direct comparisons between June 2016 and June 2017 should be avoided. The fall in transactions was largely attributed to the rise in stamp duty for additional properties, which was implemented during April last year.
Where non-adjusted transaction levels are concerned, the figure recorded for June 2017 was around 13.2% higher than May 2017. In comparison to June 2-17, however, the number of non-adjusted residential transactions this year was 8.4% higher.
For non-residential property transactions, the seasonally adjusted estimate fell by 5.5% between May 2017 and June 2017. In comparison to the corresponding month last year, the figure for 2017 was 10.3% lower. As can be generally expected with the seasonal nature of purchases, non-adjusted transactions have observed peaks and falls on a monthly basis.
Commenting on the statistics was Andy Knee. The chief executive of LMS highlighted that whilst there was a drop in figures, this was not the case for all areas of the market.
“Although residential transaction numbers fell between May and June, other areas of the market have flourished in recent months.
“LMS data shows that remortgage transaction numbers are currently on an upward trajectory.
“Low rates have forced the hand of many remortgagors, with a greater number fixing for five-years than since we started tracking the numbers last September.
“However, the long-term goal must be enabling more first-time buyers to climb onto the property ladder, which will ultimately boost transaction numbers.
“In order to achieve this, we need to ensure that a 95% LTV mortgage becomes more achievable.”
Also sharing his thoughts on the transaction figures was Doug Crawford. The CEO of My Home Move expressed initial disappointment with the fall attributing it to uncertainty around the snap general election.
“It is disappointing to see the number of property transactions fall 3.3% in June. However, this is the first month this year that the number of transactions has dipped below 100,000 (to 96,910), so it’s certainly not all bad news. No doubt the monthly falls we have seen for the last two months are a result of the uncertainty surrounding the snap general election on 8th June.
However, he went on to express hope for the upcoming months, stating: “The hope for the housing market is that we will now have a period of relative stability, providing confidence to those who have held off from moving homes. The summer is traditionally a time of boom for the market as people look to be in their new homes before the start of the next school year, so this should help the numbers move upwards rather than down. With the result of the election now firmly set and the government in recess, the housing market should see a summer bounce.”