End-of-year house price sales down compared with 2020
December figures were one fifth less than those for the previous 12 months, reports Vicky Shaw
The number of house sales in December last year was down by a fifth compared with a year earlier, but bounced upwards from the previous month.
An estimated 100,110 transactions took place across the UK in December 2021, marking a 20.0% decrease compared with 125,190 house sales in the same month in 2020.
The December 2021 total was however 7.6% higher than in November 2021, according to the figures released by HM Revenue and Customs (HMRC).
The stamp duty holiday in England and Northern Ireland ended from October 2021.
Andrew Montlake, managing director of mortgage broker Coreco, said: “Transactions in December 2020 were given a phenomenal boost by the stamp duty holiday, so it’s no surprise that transactions last month were down in comparison.
“The fact that transactions were upon November is a better reflection of where the market is at.”
Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “These numbers interestingly demonstrate market strength and resilience, even in the build-up to Christmas and withdrawal of Government economic support in September.
“Transactions are always a better measure of property market health than more volatile house prices.
“However, we have moved on since December. Activity and price rises are slowing a little, not least because of the continuing shortage of stock but concerns about rising inflation and mortgage rates is also compromising confidence when it comes to taking on debt.
“Looking forward, sales will pick up if home-owners can be persuaded to put their properties up for sale at perhaps more realistic levels, as there is no doubt that demand still strong.”
Nicky Stevenson, managing director at estate agent group Fine & Country said: “Sales continued to strengthen at the tail end of last year following a brief respite in the autumn with the unwinding of the Chancellor’s stamp duty holiday.
“The month-on-month growth in transactions comes despite the current supply of housing stock remaining at rock bottom levels.
“As new listings come on stream in 2022, there is every expectation that we may see sales volumes running at elevated levels going into the spring.”
Guy G it tins, chief executive of Chestertons, said: “We expect the market to remain buoyant for at least the first quarter of 2022 as London is seeing the return of office workers, international students as well as Londoners who left the capital during the peak of the pandemic but are now seeking a return to the hustle and bustle of the city.”