Residential property transactions fall 2% in July – HMRC

Karl Wilkinson, chief executive and founder of Access Financial Services: 

“A slight fall in property transactions shows that caution is still playing a part in the housing market, but it would be wrong to read a monthly decline as evidence that buyers have disappeared. 

“These figures reflect completed transactions, so they tell us more about activity from several months ago than what is happening today.

“What is more interesting is the changing composition of mortgage business. Higher-LTV lending is becoming a larger part of the market and remortgaging is accounting for an increasing share of owner-occupier advances, showing that borrowers are still finding reasons to engage with the market even when purchase activity is subdued.

“For advisers, that makes understanding the individual circumstances behind a transaction more important than simply following the headline numbers. 

“There is still business to be done, but it requires advisers to understand the different routes available to borrowers and help them make decisions based on their own circumstances.”

Maria Harris, chair of the Open Property Data Association: 

“Another subdued month for property transactions is a reminder that the housing market needs more than measures to address social housing shortfalls and stimulating demand where deposit is a barrier. 

“We also need to address the structural inefficiencies that make moving or renting a home slower, more complicated and more uncertain than it needs to be.

“People will always make decisions about whether and when to move based on affordability and their personal circumstances, but once they decide to transact, the process should not add unnecessary friction. 

“Too many people are put off moving and delaying the decision due to the stress, cost, and time involved.

“That is why the Government’s plans to modernise the home-buying process matter. Better standards, trusted data sharing and greater interoperability creates a more connected property market, giving everyone involved access to the information they need at the right time to make the right decisions.

“Digitising the process won’t solve the affordability challenges, but it can make the process more efficient, more transparent and less stressful, opening up supply and giving confidence to those who do decide to move.”

Richard Pike, chief sales and marketing officer at Phoebus Software: 

“Transaction volumes have been gradually losing momentum since the spring, and August continued that downward trend. With mortgage approvals also below their recent average, the housing market is going through a sustained period of weakness.

“The problem isn’t aspiration, it’s affordability. The housing market is being held back by buyers’ ability and willingness to transact at current borrowing costs.

“The Government’s new support for first-time buyers shows that stimulating demand is firmly back on the policy agenda, but affordability remains the more fundamental question. 

“Lower deposits can help people access the market, but the cost of borrowing will continue to influence how much people can afford to borrow and, ultimately, whether they choose to move.”

Ian Robinson, interim chief executive at LMS: 

“August’s transaction figures underline just how subdued the housing market remains. When activity is under pressure, every part of the mortgage and property transaction needs to work as efficiently as possible.

“The challenge isn’t a lack of information – it is making sure the right information, in a form that can be trusted and acted on, can be shared securely across the property ecosystem.

“That would help lenders, conveyancers, estate agents and other participants spend less time chasing and checking information and more time progressing transactions.

“Building infrastructure such as NPTN to help trusted data flow across the transaction is an important part of turning the Government’s Smart Data and home-buying ambitions into something that works in practice.”