Demand remains high despite fall in transaction numbers

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HMRC’s provisional non-seasonally adjusted estimate of UK residential transactions in March 2022 is 110,990, 36.2% lower than March 2021 and 18.2% higher than February 2022.

Its seasonally adjusted estimate of UK residential transactions is 114,650, 35.7% lower than 12 months ago and 2.6% higher than the previous month.

Kevin Roberts, director of Legal & General Mortgage Club, said: “Despite the pressure on borrowers caused by the rise in the cost of living, demand remains high and the overall outlook for the market is strong. This is another clear reminder of the resilience of the current housing market and its ability to weather difficult conditions.

“Even as the market experiences a healthy spring, the more complicated conditions mean that the role of advice is now more important. Borrowers may well need more support and reassurance to find the right mortgage for their needs. This is an opportunity for advisers to really demonstrate the scope of their expertise and add value, during what will be a pivotal time for their clients.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Transactions are usually a better measure of housing market health than more volatile prices – but not in this instance.

“These figures reflect sales which mainly took place a few months ago when activity was more lively. At the sharp end, we have noticed that since then the rising cost of living and interest rates, especially for those on tight budgets, are contributing to an easing of price growth and a drop in sales.

“Demand still comfortably exceeds supply and correctly-priced houses continue to attract considerable interest while mortgage repayments remain relatively affordable.”

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