Residential property transactions jump 37% in 5 years

The number of residential property transactions in the UK has jumped 37 per cent in the last five years, from 878,720 in 2010-11 to over 1.2 million in 2014-15. The residential property market is helping drive the broader economy as property transactions provide a revenue boost across a range of sectors.

HM Revenue and Customs figures show that revenue from stamp duty on property and land was £10.8bn in the 12 months to end of February 2015, worth more than capital gains tax and inheritance tax combined (£9.5bn).

Not only does the increased activity show that the residential property market is booming, the increased revenue from stamp duty is hugely beneficial in putting the UK on a firmer financial footing.

Other sectors are also reaping the benefits from the rise in property deals, citing the professional services sector getting extra business, as large numbers require conveyancing and legal advice.

Increasing numbers of new homeowners will also give local businesses a boost as many set about furnishing their new homes or investing in home improvements.

In February, HMRC data showed that the number of residential property transactions fell to 78,740 in January, down from 105,400 in December. 

This was followed by a survey which showed that house price optimism fell to its lowest level for 18 months in January, as lending got off to sluggish start.

While January’s Halifax house price index found prices increased 2 per cent to £193,130, Halifax found that 60 per cent of consumers expected the average property price to be higher in one year’s time, with house price optimism falling to the lowest since June 2013, when 52 per cent expected a rise in property prices.