Latest News Stories

Number of Property Transactions in the UK to Decline by 15%

07/11/05

The number of property transactions in the UK will decline by an estimated 15 per cent this year, according to a new study.
 
The report by Dublin-based Research and Markets predicts that revenue will fall in 2005 by 9.1 per cent, compared with 2004. There were around 1.4 million property transactions in the UK last year, a fall of ten per cent on the figure for 2003.
 
The Estate Agents Market Report 2005 reveals that total agency revenue declined to £5.27 billion in 2004, down from £5.46 billion in 2003. Most of the revenue was generated by property sales, but estate agents also earned income from mortgage and insurance sales, lettings and property management, and valuations and surveys.
 
The research company claims that the UK housing market is growing weaker, with slower property sales, vendors delaying placing their homes on the market and the margin between asking price and sale price widening.
 
Sales volumes during the first three months of 2005 were significantly down on the same period of 2004 and buy-to-let purchasers are becoming increasingly cautious, with some choosing to leave the sector. However, franchised estate agencies appear to be strengthening their position in the market.
 
According to Research and Markets the UK housing market is "unlikely to recover before 2008".
 
The government's Home Information Pack (HIP), which will be compulsory for all sellers in England and Wales from 2007, has been heavily criticised by the National Association of Estate Agents (NAEA). The NAEA claims that the HIP will prove costly and time-consuming, further affecting the housing market and forcing some agents out of business.