Get ready for continuing momentum as numbers show positive uptick over 2023
The number of UK residential property transactions in August 2024 was 5% higher than the previous year, new data from HM Revenue and Customs (HMRC) has shown.
The provisional seasonally adjusted estimate was 90,210, which was marginally lower (less than 1%) compared to July 2024, while the non-seasonally adjusted estimate was 104,330, which was 10% higher than August 2023 and 8% higher than July 2024.
For non-residential property transactions, the latest HMRC monthly property transactions report revealed the provisional seasonally adjusted estimate in August 2024 was 9,760, 3% lower than August 2023 and 1% lower than July 2024. Non-seasonally adjusted estimate for non-residential transactions stood at 9,370, down 4% year-on-year and 8% lower than the previous month.
“Today’s HMRC transactions data reveals an encouraging uptick in transactions annually,” commented Ryan McGrath (pictured left), director of second charge mortgages at Pepper Money. “Homeowners and prospective buyers are capitalising on more favourable lending conditions, highlighting the crucial role that timing and affordability play in market dynamics,”
“Last month’s interest rate reduction – the first such cut since the onset of the COVID-19 pandemic – has catalysed a step-change among homebuyers. This positive momentum will likely continue over the coming months.
“This uptick not only indicates renewed confidence in the housing market but also presents opportunities for homeowners to access competitive financing options. We’re seeing this trend reflected in a growing number of homeowners leveraging their property’s equity for renovations, debt consolidation, or other financial needs.”
Aman Bajwa (pictured below), director and co-founder of Fairbridge Capital, pointed out that while today’s figures show that the anticipated burst of activity in the property market is yet to get underway, opportunities remain for savvy investors.
“The government has already indicated that it will place an emphasis on improving supply and standards in the property market, and the budget, as well as the Leasehold and Freehold Reform Act 2024, are both opportunities for them to deliver on this goal,” said Bajwa. “Additionally, slightly slower house price growth, combined with accelerating rent growth is increasing the profitability of some deals.
“While there is still some uncertainty, specialist products such as bridging loans can help investors secure funding at the exact moment they need it, to help them take advantage of any opportunities available.”
For Phil Lawford (pictured right), national account manager at Saffron for Intermediaries, there is a lot to be happy about in the mortgage market.
“Confidence has steadily been increasing as rates drop to their lowest levels in six months, inflation remains steady, and the supply of properties is growing,” he said. “Two years on from the disastrous mini budget, the market has come a long way, and brokers and lenders can look forward to a busier Q4 going into 2025.
“While affordability is improving, rates are not going to fall to the record lows that we experienced over the last decade, and so it is more important than ever that borrowers consult a professional adviser to find the right product for their needs.”
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