House prices stabilise as property transactions reach a two year low
Data released by the Land Registry has revealed that while prices are stabilising, property transactions throughout England and Wales have fallen to a two year low. That is according to analysis carried out by property investment firm, London Central Portfolio (LCP).
The analysis, carried out for the firm’s new residential index, found that transactions had dipped by 12.6 per cent for the first quarter of the year, reaching a low of 193,118 in April.
This comes exactly two years after the introduction of extra Stamp Duty on second homes and buy-to-lets, marking the lowest amount of transactions since then.
Despite the drop in sales, house prices appeared to be stabilising, following a volatile period towards the end of last year. The average price decreased by 0.3 per cent in April and 0.2 per cent on the quarter. The closing days of 2017 saw drops of up to two per cent.
The number of transactions on new builds for the quarter fell by 18 per cent, as the prices rose by 0.2 per cent and 5.1 per cent over the course of the year.
The chief executive of London Central Portfolio said of the new figures: “Spring has traditionally been a period of increased activity across the sales market. However, it appears that buyers and sellers are still sitting on the fence.
“With the multitude of taxes that residential property has been hit with in the past six years, coupled with the uncertainty around Brexit, confidence in the market appears to be disappearing quickly. The Government is going to need to find some way of reassuring the nation soon.”