London property sales fall 18% in 2016

Home sales in Britain fell significantly during 2016, with London experiencing an 18% drop in property deals in comparison to 2015.

According to figures from Lloyds Banking Group, overall home sales in England and Wales were down by 7% for the year, with 848,857 houses being sold compared with 915,096 in the previous year.

The Greater London area saw the largest fall in sales, with the 18% drop representing 20,660 fewer sales.

Every region in England and Wales registered a lower number of sales in 2016, with the South West also particularly affected with a 10% drop.

The East and West Midlands had a less pronounced decline in home sales, with each clocking only 1% less.

However, Lloyds found that the number of first-time buyers continues to rise, with over a third (36%) of mortgage-backed house purchases made in 2016 being carried out by those making the first step on the property ladder.

The property market is struggling to regain the levels it reached during the boom in the early 2000s, with 2016 sales 34% lower in England and Wales compared with 2006. During the same ten-year period, London home sales have plummeted 44%.

CHALLENGING TIMES

Lloyds mortgage director Andy Mason said that the falling sales come despite government efforts to boost the market.

Mason said: “The recovery in the housing market has stumbled during the past year with sales declining in all regions. Despite record low interest rates and Government schemes, such as Help to Buy, sales remain significantly below the levels seen at the height of the last housing boom.”

He added that it is a challenging time for prospective home buyers, who are looking at significant costs in order to move homes.

“The decrease in the amount of people moving home could be caused by movers not being able to find the right home, in the right location or those who don’t have enough equity in their current home to put down as a large enough deposit for their next mortgage. Add to this that the average cost of moving home is close to £11,000, with costs in London over £31,000 and these factors make it more challenging for those looking to move home.”