HMRC Recorded Property Transactions 12% Down

According to figures released by HMRC, residential property transactions (above £40,000 in value) were down just over 12% in April 2022 compared to the same period last year.

Monthly Residential Property Transactions (seasonally adjusted)

• April 2022 – 106,780 transactions (a fall of 12.05%)
• April 2021 – 121, 410 transactions (stamp duty holiday and the rush to the country and seaside)
• April 2020 – 42,330 transactions (lockdown started in March 2020)
• April 2019 – 97,830 transactions (normal trading conditions)

When looking at a full financial year April to April, transactions did increase but given the above monthly figures, they are clearly slowing down.

Yearly Residential Property Transactions

• Year to April 2022 – 1,371,980 transactions (an increase of 15.36% with high demand through the year until February/March/April 2022)
• Year to April 2021 – 1,189,290 transactions (tail end of stamp duty holiday and continued limited supply and high demand)
• Year to April 2020 – 1,170,100 transactions (continued demand despite lockdown boosted by non-lockdown pent-up demand periods)
• Year to April 2019 – 1,191,160 transactions (normal trading conditions)

Conclusion

The cost-of-living squeeze and high property prices is starting to move property into its slowdown cycle with interest rate increases and a likely fall in prices later this year.  It can be seen from how mortgage lenders are reacting in increasing lending rates but now starting to offer higher loan to value mortgages i.e., smaller deposits and even a low deposit mortgage insurance guarantee scheme now on the table.

If you are a property owner, you will have increased your wealth so do not worry about a fall in values too much.

If you still trying to get on the property ladder, property prices may fall meaning lower deposits and lenders being more open to offering a greater wider range of mortgage loan to value schemes.