House sales fall to lowest level since 2013
Residential property sales in January fell to their lowest level since 2013, according to the latest government figures.
HMRC said the number of home transactions totalled 82,000, which is 12 per cent lower than last year’s reading but two higher than December 2023.
It is typical for house sales to be lower at the start of the year, with officials noting monthly falls tend to be between 20 per cent and 30 per cent in January.
In contrast, seasonally adjusted residential transactions in January showed the first month-on-month increase since August 2023.
HMRC said: “Despite the month-on-month increase, this is the lowest level of seasonally adjusted residential transactions in January since 2013.”
Today’s reading comes ahead of next week’s Spring Budget.
Sector heads are mulling what extra support could be included in the package to help buyers get on the ladder, including extending relief on stamp duty and introducing 99 per cent mortgages.
Nick Leeming, chairman of Jackson-Stops, said regardless of what the Chancellor does or doesn’t announce, policy changes will “not have an overnight impact”.
He said: “It’s important that the government continues to do what it can to create a more balanced housing environment that aligns buyer demand to seller supply, but as these figures show, the lack of new homes entering the market has created a sense of stale mate for transactional mobility.
“February is looking promising, reflected in our huge jump in Jackson-Stops viewing figures and seller supply for the mid-market, likely to see more sale conversions from interested buyers into completions.”
Despite mortgage rates rising in the last two week, other readings have pointed towards signs of recovery in the housing market.
A new report by property portal Zoopla showed a 21 per cent increase in the number of homes on the market compared to a year ago.