The slump in the property market continues

The slump in the property market continues

Figures released by HMRC have depicted that the number of house sales show no signs of increasing.

Although the number of sales rose in June, the statistics show that there has been far fewer houses sold than in the first six months of 2010.
In June this year 73,000 houses were sold which seems promising compared to the 68,000 sold in May. However, June 2010 saw the sale of 85,000 houses. These figures illustrate the ongoing repressed state of the UK’s property market.
The current average asking price from sellers is £236,597 according to Rightmove, which is part of the reason for the slump in property sales. Since the average selling price is between £163,049 and £203,528 it appears that sellers
need to lower their asking prices.Their reluctance to do so, combined with the hesitancy of mortagage companies since 2007 is one of the main reasons for so few house sales.
Since January 2011, a reported 382,000 homes have been sold, a lot less that the 407,000 sold between January 2010- June 2010 and over 50% less than the number sold between January 2007- June 2007 just befor the credit crunch.Therefore, it appears as though there is little chance of the property market picking up for at least another year.