UK property sales plummet by 32%

23 June 2008

There are now more sellers than buyers

HM Revenue and Customs (HMRC) figures indicate that the number property sales in the UK has decreased by 32% over this year.

In the first five months of 2008 there were 504,000 property sales worth more than £40,000 – the new stamp duty notification limit.

In comparison, the same period last year saw 743,000 property sales.

The number of house and flat sales has plummeted this year mainly because of the shortage of mortgage products and the increase in the cost of borrowing, both factors resulting from the credit crunch.

According to the HMRC figures, May saw a 37% drop in the number of sales compared to last year.

The figures have been supported by news from the property website Rightmove who said that sellers outweigh buyers by a ratio of 15 to 1. Last year saw an average ratio of 7 to 1.

Mile Shipside, of Rightmove, said: “It’s a sign that properties are taking longer to sell so there are more on the market.

“There are approximately half the mortgages available than there were a year ago, so there’s only about half the transactions,” he added.