Home moving transactions edged up 1% in March 2024 from 83,040 in February 2024 to 84,200 but remain 6% down on 2023 volumes. Meanwhile, annual volumes from April 2023 to March 2024 decreased 17% on the previous financial year to levels not seen since 2012/13. In 2022/23 there were 1,208,310 transactions; in 2023/24 this fell to 999,460 according to the latest transaction statistics from HMRC published today (30th April 2024)
Mortgage approvals are also on the up with Bank of England data showing March (61,325) as being 1.4% up on February 2024 (60,497), and 20% up on 12 months ago (51,048) – the sixth consecutive month of increases and their highest levels for 18 months. In the week Nationwide, Santander and NatWest moved to increase their mortgage rates, following the decisions of other lenders last week, property commentators hope the Bank of England’s interest rate cut comes sooner rather than later.
Describing the latest figures as a spring thaw after a winter of hibernation Andrew Lloyd, managing director at Search Acumen, says:
“The latest property transaction figures from HMRC suggest cautious optimism may be on the cards as we head into the summer season. Whilst the uplift in both residential and commercial transaction volumes is modest, the upward trajectory for the second consecutive month signals that the market is slowly regaining its footing after a turbulent 2023.
“On the residential front, the marginal increase aligns with our cautious expectations of a gradual recovery. As economic conditions stabilise and the traditional spring market defrosts from hibernation, more prospective buyers are feeling ready to take the plunge into homeownership, reflected in Zoopla’s latest report showing a 12% annual increase in sales agreed. This month, we have also seen housebuilders give their vote of confidence behind signs of recovery announcing more positive year-end results – an indication the new homes sector may also be on the incline. However, we’re still approaching this tentative rebound with some scepticism, as lingering affordability constraints could still serve as a blocker to progress.”
Mark Tosetti, Group Partnerships Director at Movera added that increasing mortgage rates may temper enthusiasm
“Today’s figures from the Bank of England are immensely cheering, with net mortgage approvals for house purchases in March at their highest level since September 2022. The Government’s figures for UK property transactions are also encouraging, showing growth month-on-month. However, with news that three major lenders will raise rates on new fixed deal mortgages, it would be understandable if future buyers are cautious. It will be interesting to see whether today’s statistics mark a positive trend in the market or fall back.”
Providing further insight into growing property market demand, Nathan Emerson CEO Propertymark adds:
“Our member agents reported there was an 18 per cent increase in new properties coming to the market. Also, the (increased) number of mortgage approvals made to home buyers… prove that 2024 is a far better year to be making a home move. The Bank of England’s next announcement on interest rates is eagerly awaited and we now hope the next phase of reducing borrowing rates will help better the affordability of prospective or current homeowners happens soon.”
Confidence and stability in the market remains key, says Co-founder and CEO of GetAgent.co.uk, Colby Short who comments
“While mortgage market activity has been building for some months now, we’ve seen a notable improvement in market sentiment this side of the Christmas break and there’s no doubt that 2024 is already shaping up to be a far stronger year for the UK property market. Despite mortgage rates remaining far higher than in recent years, the stability that has come due to a static base rate has allowed buyers to act with greater confidence and without fear that their lender will have moved the goalposts on their mortgage offer by the time they come to make an offer.”
CEO of Spicerhaart and Just Mortgages John Phillips concurs, saying
“The positive momentum we’ve been seeing in the market certainly continued in March with the highest number of net mortgage approvals since September 2022. This in spite of the fact of another disrupted month with an early Easter and half terms across the country. It certainly mirrors our own experiences on the ground with strong demand for both appointments, but also bookings for valuations within our estate agency branches.
“The wheels of the mortgage market are certainly moving, as evidenced by a further increase in monthly property transactions – also released today. This is all hugely positive – we just have to hope the recent unsettling on swap rates and subsequent rise in mortgage rates across the market doesn’t upset the apple cart. This could certainly impact the downward trend on the ‘effective’ interest rate paid by borrowers, which improved further in March.
Clare Beardmore, Director of Distribution and Mortgage Club, Legal and General Mortgage Services adds
“We have definitely seen the mortgage market move up a gear in 2024, after a slightly slower 2023. Gross lending and product transfer activity are holding strong, and it’s also been fantastic to see first-time buyers leading the charge, with lending to this group doubling year-on-year in February compared to the same month last year.
