HMRC’s provisional non-seasonally adjusted estimate of UK residential transactions for April 2022 is 97,970, 13.9% lower than April 2021 and 10.5% lower than March 2022.
Its seasonally adjusted estimate is 106,780, 12.1% lower than April 2021 and 3.9% lower than March 2022.
Emma Cox, director of real estate at Shawbrook, said: “The transaction figures suggest there is still intense competition for the short supply of housing in the UK. Despite the growing pressure on household finances, many homebuyers are clearly still determined to move ahead with their purchases. Buyers are also conscious of the Bank of England’s future interest rate decisions – a significant driver in pushing people to conclude their purchases as soon as possible.
“Exceptionally strong house price growth is unlikely to defy the wider economic situation forever. Despite the shortage of supply and strong demand from serious buyers, the signals are pointing to a measured cooling of the market in the months ahead.
“Lenders are continuing to support market demand with competitive rates and favourable LTVs for those looking to complete their purchases. Mortgage rates are still relatively very low in a historical context.
“Supply is still the key issue in the UK, particularly as aging rental properties need to be brought up to more stringent energy efficiency standards. Just as the financial sector is responding to that challenge with new lending products that address the issue, further clarity from the government is needed to understand how they intend to support landlords and homeowners in transitioning to more energy efficient homes.”
Chris Hutcinson, CEO of Canopy, added: “A fall in property transactions won’t come as a shock when the whole of the UK is dealing with 40-year-high inflation rates and a cost of living crisis. It’s no wonder adults are struggling to prepare to purchase property as they adapt their spending habits, all the while ensuring a good level of financial fitness.
“As inflation rates are expected to hit double figures later this year, mortgage prices will continue to increase and push potential first time buyers out of the market. We therefore need to do all we can to help them, and this includes using their current financial habits to their advantage.
“80% of renters have never missed a rent payment, yet many don’t track this on their credit score. When financial wellness is coming into question, it’s essential that positive habits like this are tracked, and have an impact. It could ultimately give a first time buyer the boost over the line they need to take their first step onto the property ladder.”