"The 8.5% fall compared to the same month last year represents something of a reality check"
The rise between November and December marks the third consecutive month of increases, but is lower than the 0.8% rise seen between October and November.
Jeremy Leaf, former RICS residential chairman, commented: "The number of transactions recorded in December is encouraging because it reflects what we have been saying for some time - that the end of 2016 showed the housing market was much more resilient than many gave it credit for and augurs well for the forthcoming first quarter."
Andy Sommerville, Director at Search Acumen, had this to say: “Despite activity being 8.5% lower than 2015, data for December has revealed a steady end to the year with a 0.2% month-on-month increase in residential property transactions. After a turbulent year in the property market we can certainly be grateful for the state it enters 2017, in comparison to what so many forecasted.
This stability is further bolstered by non-residential activity in the month lying 6.2% higher than the year prior. The commercial market was fully exposed to the wrath of Brexit uncertainty yet it has stepped up to the challenges of the last twelve months resiliently.
This being said, the state of the housing market remains relatively bleak for many and although receiving small gains in activity, slow and steady will not win the race to its recovery. Action is needed now and the sector eagerly awaits the government’s Housing White Paper to see how growing buyer confidence is met with greater supply of affordable homes.”
Stephen Smith, Director, Legal & General Housing Partnerships, said: “Despite the figures showing a slight monthly rise in the number of homes being bought and sold, the housing market remains overshadowed by our nation’s ongoing supply crisis.
Two key factors are hindering the housing market from reaching its full potential. The first is the ever-expanding gap between supply and demand, and the second is the increasing disparity between wage inflation and house price inflation. These two components need to be resolved if we are ever going to see the return of a healthy and stable housing market."
Stephen Wasserman, Managing Director of West One Loans, commented: “The sustained uptick in property transactions, as shown by today’s figures, is further reassurance for those invested in the property sector. However, the 8.5% fall compared to the same month last year represents something of a reality check.
The economic road of the past few months has been bumpy and, while this looks set to continue, it’s encouraging to see that the UK’s property market is demonstrating such resilience. In times of prolonged economic uncertainty, it’s imperative that the industry responds and makes diverse and flexible financing options available for property purchasers. This will help support chains and facilitate new deals.”
David Brown, CEO of Marsh & Parsons, said: “Despite a number of obstacles in 2016, the total number of transactions rose slightly compared to 2015, to the highest since the financial crash. The resilience demonstrated in the face of a vote to leave the EU and marked changes to Stamp Duty – which significantly impacted sales of second homes and the buy-to-let market – is not to be scoffed at.
We’ve already witnessed an encouraging stream of interest from buyers across London during the start of 2017, particularly international buyers who have been buoyed by the falling value of the pound and continue to view London property as a solid investment.”
