HM Revenue & Customs have revealed their latest data on the number of UK residential property transactions in September 2023 highlighting a 19% in comparison to September 2022.
The estimated 92,600 transactions in September was 2% lower than August 2023 on a non-seasonally adjusted basis.
On a seasonally adjusted basis, HMRC said transactions were down 17% year-on-year and 1% lower month-on-month.
Non-seasonally adjusted residential transactions are down by 2% relative to August 2023 and seasonally adjusted residential transactions have fallen by 1% in September, which is the first month-on-month decrease since May 2023.
Iain McKenzie, CEO of The Guild of Property Professionals, says:
“After a few months of rising sales, a slight fall in September shows the market is not out of the woods yet.”
The knock on effect of interest rates, mortgage rates and the on-going cost of living crisis, seem to be driving this slight decline in property interest and subsequent transactions.
Mark Tosetti, partnerships director at Movera said:
“With September data based on applications and approvals from months before, the effects of mounting interest rates in a challenging market are still evident. No major surprises in this morning’s data with a marginally drop September transactions against August, and a 17% drop year on year, which was just before the horror show mini budget.”
The cost of living crisis appears to still be having an impact when it comes to property transactions. Simon Webb, managing director of capital markets and finance at LiveMore, said:
“The housing market has been more subdued this year than last year as the cost-of-living bites into many peoples finances. September saw the first small decrease in property transactions in four months but it is almost a fifth lower than last year.
Yesterday’s mortgage data from the Bank of England showed a substantial drop in net lending and although mortgage rates are coming down, they are still high for many people. This background means house prices are lower than last year although there is more housing stock on estate agents books but less potential buyers coming through the doors.”
Has this decline come as a surprise to many? Carl Parker, national director at Just Mortgages, thinks not, highlighting affordability as a reason for the lack of enthusiasm in the property market. Carl commented:
“Rather than causing a fright, I’m sure today’s news will be expected by many given the challenging market we find ourselves in. In previous Septembers, we may expect activity to increase after the summer break and carry through to the end of the year. However, clear concerns around affordability are still hampering enthusiasm across the market. Lenders are playing their part with rates and it’s certainly not an issue of availability of funds, it comes down to people wanting and having the confidence to move.”
