House sales plunge 11% year on year

Published by Julien Tremblin for 24dash.com in Housing

The number of completed house sales in England and Wales decreased by 11 per cent in July compared to the same time last year, new data reveals.

Figures released today by the Land Registry show there were 59,919 house sales last July, down from 67,475 in the same month last year.

The number of properties sold in England and Wales for over £1 million in July 2011 decreased by 24 per cent to 707 from 932 in July 2010.

The September data  from Land Registry’s House Price Index also shows an annual price decrease of 2.6 per cent, which takes the average property value in England and Wales to £162,109.

The monthly change from August to September is a decrease of 0.3 per cent. It continues the negative monthly price change seen in August of -0.1 per cent.

The only region in England and Wales to experience an increase in its average property value over the last 12 months is London with a movement of 2.7 per cent.

The new figures showed significant regional divides. The North West experienced the greatest monthly rise with a movement of 1.0 per cent. The North East experienced the greatest annual price fall with a decrease of 8.2 per cent and the most significant monthly price fall with a movement of -3.9 per cent.

Commenting on the figures, Nicholas Leeming, business development director at Zoopla.co.uk, said: “The annual fall in the number of house sales is proof that the dark cloud of economic uncertainty is still causing people to stay out of the property market. And the continued fall in average prices provides further evidence of sellers having to reduce prices in order to tempt buyers into transacting.

“Even those at the top end of the market are feeling the pinch with the introduction of the £1m stamp duty threshold contributing to the annual fall in property transactions at this level. Only a combination of revitalised confidence in the UK’s economic prospects and further efforts from lenders to assist first-time buyers will help reignite the market. Unfortunately, this is unlikely to happen until well into next year.”

Estate agent Knight Frank yesterday warned it expects house prices in the country to drop by five per cent next year and should not see any convincing growth until at least 2014.