More stable market climate builds up buyer confidence
There has been a notable increase in property transactions across both residential and non-residential sectors in the UK, new data from HM Revenue and Customs (HMRC) has shown.
In the residential sector, the estimated number of seasonally adjusted transactions in April 2024 stood at 90,430. This figure represents a 10% increase compared to a year ago and a 5% rise from March 2024.
The non-seasonally adjusted estimate was 79,590, marking a 17% increase from April 2023. However, this figure was 9% lower than the transactions recorded in the previous month.
For the non-residential sector, the latest HMRC monthly property transactions report showed the seasonally adjusted estimate at 10,140 transactions in April 2024. This is a 4% rise from April 2023 and a 3% increase from March 2024.
The non-seasonally adjusted estimate for non-residential transactions was 10,360, reflecting a 13% year-over-year increase but a 7% decline compared to the previous month.
“The summer months are known for energising the property market, and today’s uptick in data indicates this year will be no different,” said Chris Little (pictured left), chief revenue officer at finova. “With inflation falling further to the Bank of England’s 2% target and swap rates stabilising, the potential for a base rate cut this August is boosting market activity. As a result, consumer confidence is rising, and many first-time buyers who previously delayed buying a home are now making headway on the property ladder.”
Ben Waugh (pictured centre), managing director at later life lender more2life, agreed that the more stable market climate is encouraging borrowers to seize their opportunity to get a foothold on the housing ladder.
“Aspiring first-time buyers and homeowners weighing up their remortgage options, there is reason for optimism,” he said.
Alistair Singer (pictured right), director of My Home Move Conveyancing, echoed Waugh’s statement, saying another strong month of mortgage approvals is building buyer confidence despite the fact that interest rates are yet to come down.
“With a cut expected in the coming months, we should see a further surge in activity as buyer confidence is bolstered by the first reduction to interest rates in four years,” Singer said.
“With a stable and strengthening housing market, any election activity is unlikely to have a material impact on momentum. Indeed, depending on the outcome, we often get a post-election bounce, so we expect the market to strengthen further as the year progresses.”
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