Rising sales transactions point to better days ahead

The news that property transaction volumes rose by 5% during August has been given a warm welcome by the industry.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With one interest rate cut behind us and further to come, buyers are more confident about taking the plunge.”

Nick Leeming, Chairman of Jackson-Stops, has also seen confidence growing, commenting: “Our own data reflects this trend, with increased buyer interest translating into more applicant registrations across our branches, while we have also seen a steady rise in listings throughout the last quarter as vendors seek to capitalize on current market conditions.

Property confidence

“Looking ahead, all eyes are on the upcoming Budget. While potential changes to capital gains and inheritance tax may temporarily affect demand, we don’t expect it to dampen activity in the final quarter of the year.”

Matt Thompson, head of sales at Chestertons, tells a similar story: “We saw more house hunters starting their property search in August than we did in the same month last year.”

The Guild of Property Professionals however sounds a note of caution, with CEO Iain McKenzie saying: “In many areas of the country, there is not enough good-quality, yet affordably-priced property 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.

There is a lot to be happy about.”

“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.”

But it’s Phil Lawford, National Account Manager at Saffron for Intermediaries who best sums it up, saying: “There is a lot to be happy about,” before adding, “Inflation remains steady, and the supply of properties is growing.”