House sales in UK barely half of 2007 peak

Tuesday, 24 January 2012 02:11

A new report issued by HM Revenue & Customs (HMRC) has revealed that sales of houses in the UK fell by 11 per cent last year.

The statistics show that there were 869,000 transactions in 2011, which is one of the lowest totals since records began in 1978.

It also represents a three-year slump in terms of property market action, with the worst figure being 848,000 in 2009.

A peak of 1,671,000 sales in 2006 was followed by continuing decline as the banking crisis hit, closely succeeded by the credit crunch and subsequent recession.

Now, the number of transactions for homes is barely half of the figure seen during the peak of the market's conditions.

HMRC blamed the depressed sales on fewer mortgages being available from lenders, as well as higher unemployment and the rising cost of living putting people off trying to get a foot on the housing ladder.

Meanwhile, the Council of Mortgage Lenders has also predicted that lending may decline again in 2012, potentially resulting in even lower transaction levels.

Earlier this month, a Rics Housing Market Survey found that there were 15.2 sales per surveyor in the final quarter of 2011, with London the only location in Britain to record a positive balance for prices and expectations.

• Tags:
• hmrc
,
• mortgage approvals
,
• mortgages
,
• news
,
• property market
,
• rics