Property transactions climbed 4% month-on-month in November 2022, new data released by HM Revenue & Customs (HMRC) has revealed.
Specifically, the provisional non-seasonally adjusted estimate of UK residential transactions in November 2022 is 114,200, which is also some 12% higher than November 2021.
This comes as an encouraging sign that the pipeline of transactions in the period prior to Kwasi Kwarteng’s “mini-budget” in September continued to climb, and that the knock-on effects on both consumers and the wider economy were not enough to greatly unsettle that pipeline.
It must be noted that, in the aftermath of several successive base rate hikes from the Bank of England, and with the long-term macroeconomic effects of “Trussonomics” yet to be felt, many are predicting a dip in transactions as we head into 2023.
However, the latest figures perhaps suggest a more encouraging prognosis for the market than previously thought, especially in light of lenders beginning to ease rates over the previous weeks despite base rate rises.
See full data from HMRC here.
“The realities of the cost of living crisis are undoubtedly having an impact on the housing market, with transaction volumes levelling out as we head towards the end of the year,” said Andy Sommerville, Director at Search Acumen:
“With the Bank of England recently raising its base rate for the ninth time in a row to 3.5%, homeowners looking for a mortgage are facing inflated payments, alongside a cooling housing market, as the UK’s recessionary period settles in.
So, the market does still continue to move, only slowly. Conveyancers are continuing their efforts to get property sales over the line in time for Christmas, addressing the backlog that still stands from a sustained busy spell as a result of the extreme market activity and the pandemic.
However, despite the sustained activity in the market, it is likely that Government cutbacks and a new focus on public sector efficiency, along with threats of HM Land Registry strikes, will affect the industry’s ability to respond to demand.”
