January deals flat as uncertainty weighs on housing market
Buyers and sellers in Britain’s housing market remained subdued in January, as stamp duty and Brexit uncertainty added to the traditional New Year slowdown.
Data released this morning from HMRC has found that residential deals nudged up by 0.8 per cent between December and January, marking a 1.3 per cent rise on the same period in the previous year.
The news is fresh evidence of a reluctance on the part of many buyers and sellers in the run-up to Brexit, with a swathe of recent data showing that transactions in the property market have largely remained flat despite a surge in activity from first-time buyers.
Read more: Number of first-time buyers soars to 12-year high
According to property expert and Legal & General Mortgage Club director Kevin Roberts, homeowners are still choosing "to improve not move", as a combination of political uncertainty and property taxes are keeping transactions relatively flat.
North London estate agent and former Rics residential chairman Jeremy Leaf added: "These numbers reflect what we have been seeing on the ground – that buyers are cautious and sellers reluctant to make significant reductions. Yet there is no sign of any major corrections in the market, even though sales are harder to negotiate and taking longer to complete."
Earlier this week software platform Reapit found that the average number of sales recorded by estate agents in November to January were 36 per cent lower than the long-term average, while property viewings dipped five per cent during the three months.
Read more: House sales slips as market 'holds its breath' in run-up to Brexit
"Although house prices remain reasonably resilient, our research sheds light on the extent to which Brexit uncertainty has affected property transactions in the past three months," according to Gary Barker, chief executive of Reapit.
Barker added: "This 36 per cent drop in sales represents an unprecedented five-year November-January low. It’s doubly concerning for estate agents because seasonally, this is a quieter period for transactions compared to the summer months."