Another month, another decline in property transactions. According to Customs and Excise, which collect stamp duty, in May there were just a 100,000 property transactions greater than ₤40,000. That is 32 percent lower than the same month last year.Of course, this number only captures sales volumes, and says little about prices. However, it is terrible news for all those sleezy estate agents. No sales, no commission.
4 comments:
What's shocking is that we've only got about 40,000 mortgage approvals... so, unless those property transactions seriously lag the mortgage approval figures (in which case we'd expect further substantial drops in the near future) or we should believe that ~60% of all transactions are without a mortgage. This means that there is a significant trend to down-size rather than up-size.
Asteve, these transactions include all land transactions. I also think that there is a serious lag. Having not paid stamp duty, I am not sure about this, but I suspect that the payment is made once the transaction is complete.
We know the trend:
1) Decline in transactions
2) Prices tread water
3) Prices collapse
We are clearly at point 2) but what interests me is how much quicker we are reaching 3) than the US.
Psychology has totally changed within 2 months. Right now, literally EVERYBODY I know thinks its a terrible time to buy.
Nick
Donald Trump seems optimistic about our property market, "There hasn't been the over-supply of property as in the US ..."
But a commodity is only worth what someone is able to pay. I think Mr Trump underestimates the seriousnes of the straitened finances of the British public and the wider economy.
An eventual availability of cheap property, lower wages and higher unemployment should see greedy landlords squeezed ... I hope.
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