Sales of UK property are slowing down

Sales of UK property are slowing down, according to HMRC. 

The latest official figures show that residential proprty transactions in June 2014 dipped 0.2 per cent from the previous month's total to 102,680. The recovery that has taken place, though, is evident from the year-on-year difference: a significantly higher increase of 15.7 per cent. 

Indeed, after the recession, sales of UK homes slumped severely, but HMRC highlights the long-term growth in residential sales in the last nine years, with a "steady upward trend" evident since December 2008. Since April 2013, that rate of increase has accelerated. With figures cooling down mid-2014, agents are now welcoming the return of more normal market conditions. 

Peter Rollings, CEO of Marsh & Parsons, comments: "The UK property market is singing a different tune to that heard at the start of this year. The fierce competition for properties and unprecedented house price growth has subsided as a new wave of supply has come onto the market, stabilising price rises and restoring normality to trading conditions. Both buyers and sellers alike are benefitting from this new calmness in the market, with a greater array of available property to choose from and slightly slower pace of activity making stepping onto the ladder or trading up a less daunting prospect.   

"The implementation of tighter lending criteria and affordability checks has lengthened the borrowing process and cooled the market during this transitional phase. On a seasonally adjusted basis, house sales have dropped 0.2% in the month to June 2014. But taking a longer term view, the housing market recovery is still gaining strength, with sales up 15.7% in the past year. This wave of regulatory change will ensure lasting sustainability and responsibility of growth, but the government and the Bank of England need to be careful that future interventions are not premature and over-zealous. Beyond the capital, the housing market recovery still requires a watchful eye."