HMRC: House sales fall in November

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by Kay Murchie

HM Revenue & Customs (HMRC) has revealed a slight fall in the number of homes sold in November in the UK.

According to HMRC, 87,000 homes worth at least £40,000 or more were sold in the month - a slight dip from the 90,000 reported in the previous month.

However, the HMRC noted that November’s figure was still the second highest monthly total so far this year and was more than double the number sold at the market’s lowest point in January, when just 41,000 homes were sold.

The report from the HMRC comes on the same day that the Royal Institution of Chartered Surveyors (Rics) said it expects house prices to rise by 1%-2% in 2010.

According to the Institution, there will be gains in the early part of the year but this will be followed by modest falls in the latter half of the year, resulting in a small overall rise of 1%-2%.

House prices began their descent at the onset of the credit crunch in autumn 2007 but have since rebounded by 10%-15% from their trough.

As a result, house prices are now around 2.7% higher than they were this time last year (according to the Nationwide house price index).

Meanwhile, many experts fear that the end of the stamp duty holiday could have a negative impact on the housing market.

In September 2008, the Government opted to increase the stamp duty threshold from £125,000 to £175,000 in a bid to revive the housing market.

However, the stamp duty holiday is set to end at the end of this month, meaning all properties priced at £125,000 and above will, once again, be subject to the levy.