House sales in London at lowest level since financial crash
Property transactions continued to fall across England and Wales over the last three months, and are now at levels not seen since the financial crash in some areas.
The latest LCPAca Residential Property Index shows that transactions fell by 12.6 per cent over the last quarter across England and Wales. This slowdown has accelerated over the last month, with transaction levels down by 15.4 per cent in May.
In central London transaction levels have fallen by 7.6 per cent over the last quarter. This puts transactions at the lowest level since the financial crash.
There has been a similar slump in greater London, with the number of transactions falling by 7.9 per cent.
This slowing market is having a negative effect on house prices, according to this housing index.
Its figures – based on sale prices, rather than mortgage approvals – show that house prices fell by 0.2 per cent in England and Wales over the last quarter. This included a 0.3 per cent fall in prices in April.
There was a more significant slowdown in central London, with prices falling by 2.9 per cent in April (this excludes prices for new build property). In greater London prices remained static for the month.
However these figures show that the price paid for new build property continues to rise, despite a fall in the number of transactions in this sector.
This will raise fears that schemes, such as Help to Buy, are artificially raising prices in this sector.
This index shows that across England and Wales new build transactions fell by 18 per cent over the last quarter. Prices though rose by 0.2 per cent in this sector.
The new build price premium over existing stock now stands at 16.9 per cent.
In greater London this trend was more pronounced: new build transactions fell by 18.5 per cent over the last quarter, but average prices in this sector increased by 2.5 per cent.
Source: Mortgage Strategy