Sales fall as lack of supply restricts housing market
Residential property transactions in May decreased compared with the same month last year, according to data.
Residential property transactions were up by 0.8% from April but down by 0.5% compared to May 2017, HM Revenue & Customs property statistics showed.
There were 99,590 residential transactions, provisional seasonally adjusted UK property data showed.
For May 2018 the number of non-adjusted residential transactions was about 12.1% higher compared with April 2018. The number of non-adjusted residential transactions was 1.0% lower than in May 2017.
Kevin Roberts, director at Legal & General Mortgage Club, commented: “Monthly figures continue to fluctuate, but the underlying story is one of diminishing transaction numbers over the last few years.
“A lack of supply is the key issue here. However, until we are consistently building 300,000 new homes per year, the industry needs to knock heads together to think of alternative ways to address the housing crisis.”
L&G recently found that one in four housing transactions are funded by the Bank of Mum and Dad.
Roberts added: “That in itself is a sign of a broken market.
“Not all households are able to rely on the Bank of Mum and Dad for help, and greater innovation in the sector is needed to ensure people aren’t being locked out of homeownership.
“Whether that be creating more intergenerational mortgage products, reassessing eligibility criteria, or finding other forms of saving for a deposit; lenders, housing associations and the government need to work together to ensure that all those wanting to buy a home are able to do so.”