Data from the office for national statistics shows that, in nominal terms, the total value of residential property transactions in London in the 12 months to June dropped 5.1 per cent when measured on an annual basis.
The ONS adds that, across England and Wales overall, the housing market value stood at £255bn, down £1.6bn against the previous year, and £31bn less than the highest level recorded, over a decade ago, in the 12 months to June 2007.
The overall number of residential property transactions within the same time frame fell 3.2 per cent, totalling 865,913. In the previous 12 months, there were 894,173 – a decrease of 3.1 per cent, while the property type scoring the biggest fall in the year to June was ‘flats and maisonettes’, transactions of which were down 9.1 per cent. The most resilient properties were semi-detached. In this latter category, sales fell just 0.07 per cent.
The data, named house price statistics for small areas, covers prices and the number of transactions for property sales in England and Wales excluding those sold at a discount to market level via schemes such as Right to Buy.
It differs from that provided by the UK house price index because the data describes the price paid for properties sold in a given period, rather than a measure of the changing value of properties in the overall market garnered via a weighting of the previous year. Small area data is also non-adjusted, thus avoiding seasonal effects.
Private Finance director Shaun Church says: “With the political landscape and economy volatile, many buyers, sellers and investors alike are adopting a ‘wait and see’ approach which is no doubt dampening the market. The UK’s exit from the EU is now just a matter of months away, but even if the UK secures a favourable deal, it’s likely to take a number of years before confidence returns to pre-Referendum levels.
“As one of the UK’s greatest assets, news of the property market’s decline will make for uncomfortable reading. However, first-time buyers that have been priced out of the market for years should see this uncertainty as a moment of opportunity, as they gain some respite from soaring house prices.”