Rising buyer confidence boosts UK residential property market
HMRC data shows that residential property transactions increased due to buyer confience and more mortgage options
UK residential property transactions hit over 90,000 last month, driven by rising buyer confidence and improved mortgage options.
According to HMRC data, in August, transactions reached 90,210, a five per cent on the same month last year, which in part reflects the Bank of England interest rate cut in July.
Non-seasonally adjusted transactions surged by eight per cent compared to July, reaching a provisional estimate of 104,330, suggesting renewed market activity.
In contrast, seasonally adjusted transactions saw a marginal one per cent decline month-on-month, making it the third consecutive monthly dip.
Nick Leeming, chairman of Jackson-Stops, said: “This growth is partly driven by greater choice in mortgage products and rising buyer confidence, further supported by last month’s interest rate cut by the Bank of England’.
He added that the positive momentum is expected to carry on through the rest of the year.
Non-residential transactions, however, fell by eight per cent on a non-seasonally adjusted basis from July, a four per cent drop from the previous year. This highlighted continued upcoming tax changes in the Autumn budget.
On a seasonally adjusted basis, non-residential transactions were down one per cent month-on-month.
Jason Tebb, president of OnTheMarket, noted: “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”.
The post-pandemic recovery, alongside recent mortgage rate adjustments, has provided a significant boost to the housing market.
Despite the rise in activity, affordability concerns persist, forcing sellers to price realistically.
