Industry expert says it was "a minor dip in a season of stability"
The number of UK residential property transactions in June 2024 fell slightly compared to the previous month, new data from HM Revenue and Customs (HMRC) has shown.
The provisional seasonally adjusted estimate recorded 91,370 transactions, which is still 8% higher compared to the same period last year.
The provisional non-seasonally adjusted estimate for UK residential transactions was 90,420 in June 2024, reflecting a 5% decline compared to June 2023 and a 2% decrease from May 2024.
For non-residential property transactions, the latest HMRC monthly property transactions report revealed the provisional seasonally adjusted estimate in June 2024 was 9,710, a 2% drop from June 2023 and a 3% decline from May 2024.
The provisional non-seasonally adjusted estimate for non-residential transactions stood at 9,220 in June 2024, down 12% year-on-year and 9% lower than the previous month.
“Today’s figures are not particularly surprising, as borrowers hold off purchases while they wait for the long-awaited base rate cut,” said “Tony Hall (pictured left), head of business development at Saffron for Intermediaries. “However, no matter what the Bank of England decides to do tomorrow, the mortgage market is on a very positive trajectory.
“We are already seeing lenders compete on price and a lot of noise from the new government on housing is being matched by a hum of positive sentiment among consumers as they look to take advantage of newfound stability.”
For Chris Little (pictured centre), chief revenue officer at finova, what happened today was “a minor dip in a season of stability.”
“Inflation is riding at a steady 2%, and a much-discussed base rate cut might be just around the corner,” Little said. “Of course, first-time buyers should remember that lenders will have accounted for a potential cut and priced their offerings accordingly.
“But in the aftermath of the election, it’s impossible to deny that the market is settling into a more regular groove. Soon, it may be the case that the matter of buying a property is less a question of ‘if’ and more a question of ‘when’.”
Ben Waugh, managing director at more2life, added that the “slight lull in property transactions doesn’t mean that the market has lost the momentum that has been building this year.”
“A price war among major mainstream mortgage lenders has resulted in a string of rate reductions and the gradual return of more competitive products,” Waugh said. “Today’s data is likely a momentary pause before we see a flurry of activity again.
“With a cut to the Bank of England’s central rate potentially arriving tomorrow, more borrowers might be convinced that the time has come to transact as we move into late summer and beyond.”
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