House sales dipped in April

Onus falls on landlords as renters struggle to get on property ladder, reports Vicky Shaw

The number of house sales taking place across the UK dipped in April, according to figures from HM Revenue and Customs (HMRC).

Some 106,780 transactions took place last month, which was 3.9% down compared with March.

The total was also 12.1% lower than in April 2021.

Jason Tebb, chief executive of property search website OnTheMarket.com, said: “With transaction levels lower in April than in March and down on the same period last year, it’s clear the frenetic pace of the housing market has subsided, yet the ‘new normal’ housing market, an elevated version of the prepandemic market, continues to show resilience.”

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said that, with available stock levels having shrunk: “It’s no surprise transaction numbers have started to fall as demand cannot be satisfied.

“Although activity has held up remarkably well despite successive increases in interest rates and inflation, on the ground we are starting to see the cost-ofliving crisis prompting at least an uplift in market appraisals, if not listings, in sufficient numbers to keep up.”

Chris Hutchinson, chief executive of rental platform Canopy, said: “As inflation rates are expected to hit double figures later this year, mortgage prices will continue to increase and push potential first-time buyers out of the market.”

Lucian Cook, head of residential research at Savills, said: “Though these figures are yet to reflect the impact of the squeeze on household finances and increases in interest rates, they show people’s reassessment of what they want from a home has continued to support housing market activity, even though the experience of lockdown has begun to fade into our memories.

“The pool of unmet demand among more affluent homebuyers, who are more insulated from the macro-economic backdrop than the average household, points to a slowing in the market rather than anything more dramatic, especially given the lack of stock available to buy.”

And with prospective buyers feeling the pinch, more than two in five (44%) landlords say they have supported tenants financially in the past year, such as by reducing or pausing rent, a survey has found.

Nearly three-quarters (74%) of landlords said they feel a responsibility to help their tenants during times of financial hardship, according to the research from The Landlord Works, which helps landlords to manage their property portfolios.

Nearly half (45%) of landlords said any rent reduction would harm them financially.

Around four in 10 (38%) said they intend to keep rents the same for the next year despite the financial challenges, but more than half (55%) said they will need to increase rents over the next 12 months.

One in four (25%) landlords plan to increase rents on all their properties.

Landlords using their rental properties to offset their mortgage costs are particularly likely to be planning to raise rents, with nearly two-thirds (63%) planning an increase.

More than half (57%) of landlords are concerned about whether their tenants can maintain their rental payments, with more than one in 10 (13%) saying they are very concerned, the survey of more than 700 landlords across the UK found.

Paul Wootton, director of The Landlord Works, which is partner brand to The Mortgage Works, Nationwide Building Society’s buy-to-let lender, said: “Landlords are facing a real dilemma at the moment in dealing with the continued rising cost of living.

“On the one hand, there is a need to ensure they can cover the increasing costs associated with their properties and ensure they are following the market. However, as our research demonstrates, they are also acutely aware of the financial challenges facing their tenants.

“It’s great to see such a high proportion of landlords feel a sense of responsibility towards supporting these tenants during these challenging times.

“And in a lot of cases, this sentiment has been met by financial support for their tenants over the last 12 months.

“While we will see rents rise over the coming months in many cases, we can also expect landlords to offer continued support at what is a tough time

for many.”