House sales rise 40% in March

Wednesday, 22, Apr 2009 10:49

House sales in March rose by 40 per cent, according to figures out today from HM Revenue and Customs.

There were 60,000 new property transactions each worth over £40,000 for the month, compared with just 43,000 in February.

The figures are in line with news from the Bank of England yesterday that mortgage lending had picked up moderately. The Council of Mortgage Lenders (CML) also released its research on lending today, which showed a 16 per cent increase in lending from February to March.

Commenting on the CML figures, Andrew Montlake, of independent mortgage broker Coreco, said: "Although seasonal factors are certainly influencing this increase in mortgage lending, the general view that the dark clouds may be slowly lifting are further supported by estate agents experiencing an increase in the number of applicants registering in the past few months and recent reports such as the HM Revenue & Customs stating that house sales have jumped 40 per cent in March.

"What we need now is for the government and the banks to play their part.

"Initiatives such as the Homeowner Mortgage Support Scheme (HMSS) are a step in the right direction but today's Budget provides the perfect opportunity for the government to make a bold statement and show that it is serious about helping restore confidence in the property market."

When seasonally adjusted, the figures from HMRC still showed an increase from 54,000 sales to 61,000 sales. Sales of homes in England rose 40 per cent, from 37,000 in February, to 51,000 in March.

Figures for the number of non-residential properties sold also increased, from 6,000 in February to 9,000 in March.

There is normally a rise in property sales during the spring, when new buyers traditionally flock to the market.

A spokesperson for the CML said: "There are some signs of a recovery but it's only at a very small and delicate stage. We would like to see data over a longer period of time than what we have seen so far, before we can say the housing market is recovering."

The CML have asked the chancellor for a rise in the stamp duty threshold to £250,000, an expansion of low cost home ownership to help first-time buyers and the expansion of income support for mortgage interest and mortgage rescue schemes; in the Budget which will be announced today.

Sarah Garrod