"Despite the figures showing a slight monthly rise in the number of homes being bought and sold, the housing market remains overshadowed by our nation’s ongoing supply crisis."
The rise between November and December marks the third consecutive month of increases, but is lower than the 0.8% rise seen between October and November.
Former RICS residential chairman, Jeremy Leaf, said: "The number of transactions recorded in December is encouraging because it reflects what we have been saying for some time - that the end of 2016 showed the housing market was much more resilient than many gave it credit for and augurs well for the forthcoming first quarter."
Stephen Wasserman, Managing Director of West One Loans, added: “The sustained uptick in property transactions, as shown by today’s figures, is further reassurance for those invested in the property sector. However, the 8.5% fall compared to the same month last year represents something of a reality check.
“The economic road of the past few months has been bumpy and, while this looks set to continue, it’s encouraging to see that the UK’s property market is demonstrating such resilience. In times of prolonged economic uncertainty, it’s imperative that the industry responds and makes diverse and flexible financing options available for property purchasers. This will help support chains and facilitate new deals.”
Stephen Smith, Director, Legal & General Housing Partnerships, commented: “Despite the figures showing a slight monthly rise in the number of homes being bought and sold, the housing market remains overshadowed by our nation’s ongoing supply crisis.
“Two key factors are hindering the housing market from reaching its full potential. The first is the ever-expanding gap between supply and demand, and the second is the increasing disparity between wage inflation and house price inflation. These two components need to be resolved if we are ever going to see the return of a healthy and stable housing market."
