Sales volume changes according to UK HPI data

The UK saw a fall in seasonally adjusted property transactions completed during 2017.

According to the UK Property Transaction Statistics, completions on property with a value of £40,000 or more fell by 1.9% in comparison with February 2016.

The number of completed house sales can also be analysed by using the most recent statistics from Land Registry. Across both England and Wales, a decline in house sales can be observed when looking at the number which took place in December 2016 and those which occurred during the corresponding period in 2015.

In England, completed house sales during December 2016 came to a total of 65,064 in comparison to 2015’s figure of 80,367. This represents a fall of 19%.

The total number of house sales in London dropped by 31.3% to 6,665. During December 2015, the figure reached 9,700.

The number of completed house sales in Wales during December 2016 reached 3,845. This is 6.9% lower than 2015’s total of 4,129.

In England during December 2016, repossession sales totalled 584, whilst in Wales, the number reached 66.

Where house prices are concerned, the UK February House Price Index (HPI) data indicates a yearly increase of 5.8% bringing the average price of property in the UK to £217,502.

In England, the data also shows that annually speaking, prices have risen by 6.3%. This takes the average property value to £234,466. In comparison to January 2017, this is an increase of 0.8%. London has seen house prices increase annually by 3.7%, meaning the average property value is £474,704.

For Wales, the annual increase in prices was 1.8% according to the HPI data, bringing the average property price to £145,293.

Commenting on the figures was Doug Crawford. The CEO of My Home Move stated:

“Today’s ONS House Price Index data shows that the housing market is mostly shrugging off the doom-mongers with a monthly growth of 0.6% and an annual rise of 5.8%. It’s true that the property market is not racing ahead at the same speed as this time last year, when investors turbocharged the market ahead of changes to Stamp Duty in April 2016.  But the slight dip in transaction volumes in February has not had a material impact on prices, which will reassure buyers and sellers alike.

“There is a bit of regional variation at play, with the areas that have seen substantial house price growth in recent years cooling off – notably London and the South East. Arguably this is needed to counteract some of the rapid growth over recent years.

“The fact is that the fundamentals are in place for a solid year for the housing market, with robust levels of demand significantly outstripping supply. The biggest obstacle for a happy housing market remains the access to the first step of the housing ladder for first-time buyers, even in areas where the market is cooler.”

The full HPI can be accessed here. 

Today's Conveyancer