The seasonally-adjusted estimate of the number of UK non-residential transactions in August 2024 is 9,760, 3% lower than August 2023 and 1% lower than July 2024.
Iain McKenzie, CEO of The Guild of Property Professionals, comments:
"Another ‘marginal’ fall in property sales should not spell disaster for the property industry, especially considering the healthy volume of sales we have seen so far this year. In many areas of the country, there is not enough good-quality, yet affordably-priced housing to meet the unprecedented levels of demand that estate agents are seeing. First-time buyers are choosing to sit tight, with hopes that market conditions will go in their favour. For others, it is simply a case of affordability concerns. Saving for a deposit is challenging at the best of times, but with living costs still high, and energy prices set to increase this winter, it makes the process even more difficult.
“The Bank of England has made some cautious progress in lowering interest rates as a result of falling inflation levels in the past year. It is anticipated that it will continue to be much of the same as the year comes to a close, dashing hopes of a steep decline in mortgage rates and acting as a deterrent to first-time buyers. It is now just over a month until the 30 October Budget and we are hopeful that there will be some practical changes that will help reassure sellers and get more people on the property ladder.
“Potential increases to Capital Gains Tax may have panicked some landlords to sell up while rates are lower, however our Members have not noticed a significant influx of available properties on the market.”
Nathan Emerson, CEO of Propertymark, comments:
“The year to date has proven transformational in terms of consumers having greater confidence and flexibility to approach the buying and selling process. We have seen a sizeable uplift in market conditions with aspects such as inflation staying within targeted range and mortgage deals that demonstrate some lenders are feeling buoyant enough to bring far more competitive mortgage deals to their prospective customers already. However, a lot will depend on base rate decisions over the coming months and the Bank of England will likely not be keen on undoing progress made so far by unrealistically lowering the base rate too rapidly.”
Matt Thompson, head of sales at Chestertons, says:
“We saw more house hunters starting their property search in August than we did in the same month last year. This increase in buyer activity was driven by lower interest rates and the availability of more attractive mortgage products which also tempted first-time buyers to take the first step towards home ownership.”
Nigel Bishop of Recoco Property Search says: “In August, homeowners were motivated to put their property up for sale amid fears over an increase in Capital Gains Tax in the upcoming Autumn Budget. As more sellers were entering the market, buyer interest and activity picked up too. Although this created a more competitive market for house hunters, the influx of homeowners wanting to sell quickly still allowed room for price negotiations.”
Jason Tebb, President of OnTheMarket, said:
“It is encouraging to see transaction numbers improve year-on-year, as they are a far better indicator of the health of the housing market than house price movements. With further interest rate reductions expected, this trend should continue as pent-up demand is released from buyers and sellers who have been waiting for rates to come down. While falling mortgage rates are improving confidence, affordability remains an issue and sellers must price realistically, particularly if they are keen to move before the end of the year."
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:
“Although inevitably reflecting what was happening at least a few months ago, transactions are still a better indicator of market prosperity than more volatile prices. ctivity remains surprisingly strong during a period when we might have expected worries about the economy, the election and mortgage rates to have blown it more off course. ince then, inflation has settled and borrowing costs dropped a little and a measure of political stability has returned. However, more property choice and Budget concerns have meant significant change over the coming quarter at least is unlikely."
