Residential sales slump 29% between March and April: HMRC

The number of UK residential transactions totalled 67,220 in April 2023, 32% lower than April 2022 and 29% lower than March 2023, the latest HMRC statistics show.

On a seasonally adjusted basis, transactions were 25% lower than April 2022 and 8% lower than March.

Alex Lyle, director of Richmond estate agency Antony Roberts, commented: "While April’s transaction figures are disappointing, the picture is not uniform with some properties selling better than others.

"The majority of the most desirable houses - £1.5m-plus family homes - are going under offer within three weeks of marketing. However, flats, in particular those compromised in some way, are struggling to achieve the prices we could have expected this time last year.

"One issue is how long everything is taking – it is hard to remember a time when deals took so long to progress from agreed to exchange of contracts. As well as chains being more protracted, many solicitors are finding themselves working at capacity."

Tomer Aboody, director of MT Finance, said: "With rates still rising, this is adding further uncertainty as buyers are unsure as to whether to wait or make a move.

"With transactions on a downwards trend, some stimulus is needed to encourage sellers to come to market, and downsizers in particular.

"With a general election in 18 months’ time, it would be a good way for the government to boost the economy and get the property market thriving once more."

Nicky Stevenson, managing director at national estate agent group Fine & Country, commented: “A slowdown in the property market last autumn as a result of the mini Budget has fed into April’s sales figures.

“Due to the time it takes to complete on a property, many of these sales will have been agreed just as mortgage rates spiked, resulting in some transactions stalling due to affordability issues.

“We will see sales numbers increase soon, as property market activity has grown in recent months as mortgage rates have stabilised. Mortgage approvals, an indicator of future transactions, have also been ticking up.

“This boost in activity is partly down to increased buyer confidence, alongside an increasing pipeline of new homes going up for sale, which is giving buyers much more choice and feeding their enthusiasm to begin their property search.”

Mike Scott, chief analyst at national estate agency Yopa, added: "This disappointing number, combined with the recent equally disappointing inflation figures and the resulting increases in market expectations for interest rates, mean that the housing market slowdown is likely to be longer and deeper than we originally anticipated. We now expect only around one million home sales this year, compared with around 1.2 million in a more normal market, and anticipate that house prices will remain flat or decline a little further over the second half of the year."