New data from HM Revenue & Customs has revealed the number of UK residential property transactions in August 2024 is 10% higher than the same month last year.
The provisional non-seasonally adjusted estimate of the number of UK residential transactions in August 2024 is 104,330, 10% higher than August 2023 and 8% higher than July 2024.
Looking at the same data on a seasonally adjusted basis, HMRC said that the number of UK residential transactions in August 2024 is 90,210, 5% higher than August 2023 and marginally lower (less than 1%) than July 2024. In response to National Statistics UK Monthly Property Transactions, Andrew Lloyd, Managing Director at Search Acumen, commented:
“The increase in residential property transactions offers a note of cautious optimism as we move out of the traditionally quieter summer months which had a more pronounced effect on the commercial sector.
Despite a recent interest rate freeze, July’s interest rate reduction has begun to have a tangible impact, with August’s figures suggesting that homebuyers are keen to capitalise on more favourable borrowing conditions, a trend which commercial investors will likely also follow soon, especially if we see further rate cuts as the year progresses. This underscores the market’s responsiveness to monetary policy and highlights the crucial role of accessible finance in stimulating property market activity.
Looking ahead, the Labour Party conference has brought property market reform into sharp focus. Angela Rayner’s outline of plans to reform the planning system and increase housing stock could have significant implications for the sector. While the full impact of such reforms would take time to materialise, the prospect of change is an exciting opportunity to introduce more activity into the market. As we transition into autumn, typically a more active period for property transactions, it will be crucial to monitor how these various factors continue to shape market activity.”
Iain McKenzie, CEO of The Guild of Property Professionals, said that another “marginal fall” in property sales “should not spell disaster” for the property industry. He continued:
“…especially considering the healthy volume of sales we have seen so far this year. In many areas of the country, there is not enough good-quality, yet affordably-priced housing to meet the unprecedented levels of demand that estate agents are seeing. First-time buyers are choosing to sit tight, with hopes that market conditions will go in their favour.
The Bank of England has made some cautious progress in lowering interest rates as a result of falling inflation levels in the past year. It is anticipated that it will continue to be much of the same as the year comes to a close, dashing hopes of a steep decline in mortgage rates and acting as a deterrent to first-time buyers.
It is now just over a month until the 30 October Budget and we are hopeful that there will be some practical changes that will help reassure sellers and get more people on the property ladder. Potential increases to Capital Gains Tax may have panicked some landlords to sell up while rates are lower, however our Members have not noticed a significant influx of available properties on the market.”
Nick Hale, Chief Executive Officer at Movera, said:
“These latest figures reflect a resilient UK housing market, with residential transactions in August 2024 up 5% year-on-year. As we approach the upcoming Autumn Budget, it’s clear that the housing sector remains a vital component of the economy. Any measures introduced in the Budget, such as adjustments to stamp duty or support for first-time buyers, could further stimulate demand, especially as affordability remains a key concern for many.
While the non-residential sector has seen a slight decline, the strong residential performance underscores the continued confidence in home ownership. For the home moving industry, this presents ongoing opportunities, and at Movera, we are well-positioned to help homeowners navigate any policy changes or market shifts that emerge from the Budget.”
Nathan Emerson CEO Propertymark, said that the year to date has “proven transformational in terms of consumers having greater confidence and flexibility” to approach the buying and selling process. He continued:
“We have seen a sizeable uplift in market conditions with aspects such as inflation staying within targeted range and mortgage deals that demonstrate some lenders are feeling buoyant enough to bring far more competitive mortgage deals to their prospective customers already.
However, a lot will depend on base rate decisions over the coming months and the Bank of England will likely not be keen on undoing progress made so far by unrealistically lowering the base rate too rapidly.”
