Property sales down a third
June 30, 2008
HM Revenue and Customs said the number of properties sold in the UK has fallen by 32% this year.
The number of houses sold fell to 504,000 between January and May, from 743,000 in the same time last year. The houses sold were valued at more than £40,000 which is the threshold at which HM Revenue and Customs gain land tax returns. Sellers now outweigh buyers because mortgages ar so hard to acquire.
Louise Cumming at comparison site moneysupermarket.com said “The mortgage industry should bear much of the blame for the stagnation of the housing market. The mortgage landscape is unrecognizable today, with the number of products decreasing from more than 30,00 in August 2007 to around 5,00 today.”
She also said “The indications are that the bank of England is now more likely to consider increasing the base rate to try to combat inflation. What effect this will have on homeowners’ pocket and their increasing fragile confidence doesn’t bear thinking about.”
She added “Lenders have done a U-turn in respect of the risk they are prepared to take, which is hitting borrowers with little or no depositor equity. This directly affects first time buyers, who are the life blood of the housing industry.”
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