UK house sales were 8% lower in 2015 over the year with London and majority of towns leading the way.
A report by the Halifax based on the Land Registry data shows that house sales are lower by 8% in 2015 due to a shortage of homes on the market.
The Greater London property market declined the most with 14% less sales for the year and the smallest fall of 3% was the North West. In addition 82% of towns in the UK also experienced a decline in sales compared to a rise in sales of 97% recorded in 2014.
Sale of homes in Greater London were 69,435 between January and August 2015 having reduced 11,096 or 13.8% compared to the same period in 2014.
The lack of suitable properties on the market at an affordable price for home movers means they will remain in their current home and saving for a bigger deposit.
Sales increased in other towns
Some towns have seen a strong rise including Salford in the North West with sales up 23% in the year and Halesowen in the West Midlands up 18%.
The top ten towns with the biggest increases were outside of southern England with sales higher by 13% to 23% with demand from first time buyers, home movers and buy-to-let landlords.
Even so, there was a marked difference locally with pockets of higher and lower home sales in all regions. For example, for Yorkshire & the Humber sales were lower by 6% whereas Bartley was down by 27% and Pontefract up 20%, both in Yorkshire.
Craig McKinlay, Mortgages Director at Halifax has said there are significant variations in local housing activity with a small number of towns recording large increases. These towns are mainly in the north of England where prices are relatively low.
London house prices rise due to shortage
Mr McKinlay said, sales have declined across the country and in particular the southern regions. An acute shortage of properties for sale has constrained market activity and added to the rise in prices.
There may be fewer suitable homes on the market as the equity release mortgage buyer can avoid downsizing and access cash to repay an interest only mortgage or even reduce inheritance tax owed by your beneficiaries.
In Greater London 30 boroughs recorded a fall in sales with only two experiencing an increase, although the average price of property still increased by £55,095.
For first time buyers in London the price rise makes it more difficult to buy requiring a larger deposit or higher earnings to purchase their first home.
One advantage of rising house prices in London for existing homeowners is remortgage buyers can now release capital for home improvements.
According to the Halifax, the borough of Kensington and Chelsea was the worst performing in London with a 28% decline in sales followed by Hammersmith and Fulham.
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