UK property transactions drop by a third over the past three months

by Property 118

14:33 PM, 19th February 2019
About 3 months ago

UK property transactions drop by a third over the past three months

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UK property transactions drop by a third over the past three months

Reapit research has found that UK property transactions have plummeted by a third in the past three months as Brexit uncertainty weighs on the market.

Reapit, the leading software platform for estate agents, compared its most recent three months of sales data with the five-year average for the same November-January period in order to gauge the impact of uncertainty on the property market across its measurable metrics.

By analysing data from thousands of estate agents’ offices, it found strong indicators of a stalled market across the board. Every data point was down on the five-year average, from the initial market appraisals, which are carried out by agents to give a likely asking price and property marketing strategy, through to exchange of contracts and ultimate sale.

Key results from the Reapit research are:

  • The average number of exchanges recorded per estate agent office dropped by 36% when compared to the long-term average
  • Properties under offer were down 8% on the long-term average
  • Instructions of new properties were down 10%
  • Viewings of properties were down 5%
  • Market appraisals of properties were down 2.5%

Gary Barker, CEO of Reapit, commenting on the data said: “Although house prices remain reasonably resilient, our research sheds light on the extent to which Brexit uncertainty has affected property transactions in the past three months. Our data reveal that property sales per estate agent have dropped by a third when compared to the long-term average.

“This 36% drop in sales represents an unprecedented five-year November-January low. It’s doubly concerning for estate agents because seasonally, this is a quieter period for transactions compared to the summer months.

“It’s fair to say that the housing market is holding its breath as we await the Brexit outcome. Nobody wants to risk being on the wrong side of a potential house price crash, so the market sentiment is to wait and see.

“There is a silver lining we can be more confident about: once we have clarity, the pent-up demand of people waiting to buy, and supply of people waiting to sell, will see an upswing in activity for the housing industry.  Regardless of politics, life goes on and people need to move homes. Agents need to be prepared when the floodgates are opened.”



Comments

Ros poldermans

9:34 AM, 20th February 2019
About 3 months ago

Is it due to the government interference and not Brexit uncertainty.

DALE ROBERTS

13:19 PM, 20th February 2019
About 3 months ago

Reply to the comment left by Ros poldermans at 20/02/2019 - 09:34I agree.
Subjective reporting without supporting evidence is merely speculation.
The Stamp Duty increase has led to a direct impact on property purchase and sale figures show an almost immediate decline after it was doubled. This causes a bottleneck in property sales as homeowners who would like to downsize - won't, and potential homeowners who would like to buy - can't.
BTL interference and punitive anti-landlord legislation has plunged the industry into a level of turmoil that is easily discerned - specifically in London. Landlords are exiting the industry. Elsewhere UK property continues to enjoy quite robust growth.
Blaming Brexit has become an accepted excuse for every slowdown, including the exit of brand name motor industries. No-one cares to understand the fundamentals ie the collapse of diesel motor sales and the fact that the younger generation are "uber" devotees. The German economy has always been intimately dependent on car sale volumes and has been directly affected by the downturn in sales. It's stagnating.
The UK economy is powering forward notwithstanding Brexit. Unemployment is at it's lowest in years and the economy is performing better than either Germany or France.
Which may explain why Brussels is terrified of a successful Brexit and appears determined to make an example of the UK before it sets the standard for the ultimate collapse of the EU.
I just wish May would descend on Brussels and handbag the lot of them with a confident "this is what I want and give it to me if you wish to continue trading with the UK or else we'll take our business elsewhere" instead of dragging this matter out for such a prolonged period. It's fast becoming a shameful fiasco.
I'm exiting the UK BTL market due to the continued anti-landlord rhetoric. And my first sale went to a professional from Asia who has a contract to work in London for some years. I'm not too sure how the Government's interference in my private home ownership has in any way benefited the UK people they supposedly represent. It didn't result in a purchase by a UK citizen.
And frankly, I'm rather pleased about that as an offshore investor myself.


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