Property industry welcomes news that housing market is on the move again
New data from HMRC shows housing transactions rose by 7% in July.
The latest data released by HMRC shows the market was on the move again in July with 90,630 residential transactions – a rise of 7% when compared to July 2023 – and commercial transactions were up by 11%.
After the headwinds of an election, cost-of-living crisis and a rising base rate, the property industry has given the news a warm welcome.
Nathan Emerson, CEO, Propertymark, said: “It is encouraging to see the number of property transactions continue to increase overall and we expect to see a further uplift later on now that the Bank of England has started on the journey of cutting interest rates.
Encouraging
“The UK Government has an opportunity to establish a new level of confidence in the housing sector when they return from their summer recess by setting down what potential schemes may be available to first-time buyers over the coming twelve months.”
Most are crediting the reduction in the base rate for the turnaround and as
Tom Bill, head of UK residential research at Knight Frank said: “As the result of falling mortgage rates, transaction volumes were 5% higher than the five-year average in July.
He then adds he now: “Expects a busier autumn market than the last two years as buyer appetite returns, defying some of the recent statements made by the government about the fragile state of the economy.”
And Amy Reynolds of Antony Roberts says further cuts are expected, saying: “Markets are pricing in a further base rate cut in November, taking it to 4.75%.”
It’s not all good news though, with Jeremy Leaf, north London estate agent and a former RICS residential chairman, sounding a note of caution: “Concerns about the Budget will undoubtedly compromise momentum.
“Buyers and sellers at the higher end of the market particularly expect to bear the brunt of tax increases so that is where we expect the change to be most noticeable.”
