28 June 2024
If you are covering the latest UK monthly property transactions data, please see the following comment from Charlotte Nixon, mortgage expert at Quilter:
“The number of monthly residential property transactions has continued to grow, rising to 91,660 on a seasonally adjusted basis in May 2024, 2% higher than April 2024 and 17% higher than in May 2023. While still relatively small, this increase suggests the market continues to head in the right direction after what has been a remarkably subdued period for property sales.
“Interestingly, despite the pressures buyers continue to face, the number of property transactions appears to have returned to a more ‘normal’ level and is now roughly in line with pre-pandemic figures. May 2024 saw a rise to 91,660 property transactions, which is not far off the 96,120 seen in May 2019.
“What’s more, though the increase in transactions has been modest over the past few months, there may be some green shoots appearing for hopeful buyers. Lenders such as HSBC, Barclays and NatWest have all opted to cut mortgage rates this week in anticipation of the Bank of England’s first interest rate cut which could be seen as early as its next monetary policy meeting in August.
“It has been a rocky road for hopeful buyers over the past few years, primarily due to the volatility seen in mortgage rates, but the prospect of a rate cut could increase consumer confidence and encourage buyers to take the leap and exit ‘wait and see’ mode. Confirmation of a rate cut later in the year could help to refresh the property market with demand from buyers who have been eagerly waiting for rates to drop.
“With the general election around the corner, the housing market has already been the focus of several pledges. The Labour party has pledged to build 1.5 million homes within five years should it win the election, while the Conservatives have promised to abolish stamp duty for first time buyers purchasing properties up to £425,000 and to introduce a new Help to Buy equity loan scheme.
“There is a real need for change in the housing market, with a particular focus on supporting first time buyers. While these pledges are a good start, far too often such targets are missed. Prospective first time buyers have faced significant challenges and financial pressures in recent years, so the incoming government must thoroughly consider any changes to ensure they will have the desired outcome and truly support those they intend to.”
