The number of properties sold in London have reduced 24% in the last year with those in England down by 17% as buyer demand falls.
Data from the Office of National Statistics (ONS) shows the number of homes sold in London for the year to July 2017 were 6,639 compared to 8,794 last year, a reduction of 24.5%.
Figures for England have reduced from 77,919 last year to 64,592 to July 2017, a reduction of 24.5% as demand from new buyers has reduced, such as from home movers and first time buyers.
The Royal Institution of Chartered Surveyors (RICS) has reported that new buyer enquiries fell during September, as a net balance of -20% more respondents noted a fall in demand.
Sales down a quarter in two years
The number of sales in England are 28.0% lower than the recent 2015 level having reduced from 89,783 to 64,592.
In London the fall is more pronounced and is lower by 44.5% reducing from 11,980 in 2015 to only 6,639 in 2017.
The following table from the ONS shows the number of sales in England and London over the past five years.
| Year | England | London |
|---|---|---|
| 2013 | 70,536 | 10,889 |
| 2014 | 83,160 | 11,340 |
| 2015 | 89,783 | 11,980 |
| 2016 | 77,919 | 8,794 |
| 2017 | 64,592 | 6,639 |
This trend has been confirmed by RICS where -20% more respondents noted a fall in demand from new buyer enquiries, extending a sequence of negative readings into a sixth month and represents the weakest figure since July 2016.
At the same time, headline agreed sales volumes also fell, returning a net balance of -15% this being the softest reading since last July after the EU referendum.
London and the South East were at the forefront of the decline although weakness in transactions was widespread during September.
There has been a slowdown in new purchases for buy-to-let investors after changes to stamp duty and taxation allowance on mortgage interest make it less attractive to buy.
House prices strongest in North West
Even though the number of property sales are lower house prices in the UK have increased by 5.4% over the year to September 2017.
The following table from the ONS shows average house prices and annual change for homeowners to September 2017.
| Region | Annual change | House prices |
|---|---|---|
| London | 2.5% | £483,568 |
| South East | 5.5% | £324,465 |
| East of England | 5.9% | £289,301 |
| South West | 6.6% | £252,737 |
| England | 5.7% | £243,945 |
| West Midlands | 5.7% | £189,038 |
| East Midlands | 6.4% | £184,399 |
| Yorks and the Humber | 5.6% | £158,884 |
| North West | 7.3% | £160,951 |
| North East | 4.4% | £130,271 |
The North West has seen prices rise the highest up 7.3% with an average property value of £160,951
Other strong regions is the South West higher by 6.6% with average values of £252,737 and East Midlands up 6.4% with average value of a home at £184,399.
One advantage of rising house prices for homeowners is remortgage buyers can now release capital for home improvements.
For equity release mortgage buyers the rising values would allow them to access their property wealth while remaining their home, using this for any purpose such as home improvements, holidays or giving to a family member.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
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Learn more by using the equity release calculator, mortgage monthly cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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