29 February 2024
If you are covering the latest UK monthly property transactions data, please see the following comment from Karen Noye, mortgage expert at Quilter:
"New data from HMRC this morning reveals that while there was a 2% uptick in property transactions to 82,000 in January 2024 compared to 80,500 in December 2023, the first rise in transactions since August 2023, this marks the lowest level of seasonally adjusted residential transactions in January since 2013.
“Much of the month-on-month uptick can be attributed to the lowering of mortgage rates seen at the start of the year. Mortgage rates have since been increasing after the period of welcomed decline, which could cool the market further.
“The overall market stability remains dependent on the Bank of England's interest rate policies and broader economic factors. If the Bank begins lowering its base rate later this year as expected, it would present a more favourable borrowing landscape. Such a move would see a reduction in mortgage rates which could pull prospective buyers out of ‘wait and see’ mode and accelerate the housing market’s recovery.
“Reigniting the property market is something the government is likely exploring ahead its spring budget next week. Rumours of the return of 99% mortgages could be its attempt to get more first time buyers into the market which could help boost transactions further up the chain too.”
