The HMRC property transaction data for the month revealed there were 80,420 completions on a seasonally adjusted basis, which was 18 per cent down on the year before. Compared to November, this was a small decline with a one per cent drop.
On a non-seasonally adjusted basis, residential property transactions came to 85,820 in December. This was an 18 per cent decrease on 2022 and two per cent lower than the year before.
Usual seasonal dip
Kay Westgarth, director of sales at Standard Life Home Finance, said the fall in activity over the festive period was “no cause for concern” and transactions should rebound in January.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said this was a sign that people were still waiting for higher house prices and interest rates to ease. However, despite lower mortgage pricing in recent months, Coles said we were “still a long way from a full recovery”.
She added: “The dearth of sales completions reflects the fact that we weren’t far off the August peak in mortgage rates when a lot of these sales were agreed. The more positive news is that we have seen significant cuts since, bringing the average two-year fixed-rate mortgage down from around seven to 5.5 per cent, according to Moneyfacts. Zoopla says this has translated into more agreed sales at the start of 2024.
“However, given it takes three or four months for agreed sales to become completions, it’s going to take some time for this to show in the figures.”
John Phillips, CEO of Spicerhaart and Just Mortgages, also said the decline in transactions “will come as little surprise, as many potential buyers will have put their plans on hold in the run up to Christmas”.
He said although the end of the year was not ideal, “we have started 2024 on a really strong footing with high levels of buyer registrations and valuations being booked – the highest we’ve seen for a good number of months. New build lead numbers have also seen a strong start to the year too.”
“Despite the recent inflation scare, there are many positive indicators for the market and the year ahead, and there’s no question potential buyers are beginning to respond to this and find some confidence.
“There’s no doubt that affordability will continue to be a big factor this year. If brokers have ever needed a reminder to be proactive and remain visible in their local area, this is certainly it,” he added.
Clare Beardmore, director of Legal and General Mortgage Club, agreed, saying there were “green shoots in the housing market”.
She added: “We’re slowly edging towards spring – typically the busiest season for the housing market. The picture undoubtedly remains complex, but advisers are primed and ready to help buyers secure their dream home with the best product for their needs and circumstances.”
