According to the latest figures from HMRC, the December residential property transaction figures are also 3% higher than November.
On a non-seasonally adjusted basis, residential property transactions came to 98,120, a 15% jump year-on-year but 7% down compared to November.
The report stated that December’s figures showed a stabilisation following a sharp increase in transactions in October. Figures fell back to “previous levels” in November and “remained relatively stable” in December.
HMRC said property transactions for the year to date, which covers the period from April to December, are estimated at 873,450 on a seasonal basis and 839,870 on a non-seasonal basis.
Richard Pike, chief sales and marketing officer at Phoebus, agreed that the seasonally adjusted figures “demonstrate a relatively stable housing position”.
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He continued: “As socioeconomic conditions steady and the Bank of England cuts rates slowly to circa 3.5%/3.75% this year, we can expect a positive movement in the housing market as we move through the year.
“There isn’t a lot economically to see any sharp rise in house transactions this year, albeit there will be some growth. An area to keep an eye on further down the line is full digitisation of the house buying process, which will speed up transactions and avoid the unnecessarily stressful experience that moving home is today. We are working with the Open Property Data Association (OPDA) to make this happen and are looking forward to seeing the results in the future.”
Tomer Aboody, director of specialist lender MT Finance, noted that the “quite significant increase in transaction numbers compared with this time last year shows how reduced interest rates have encouraged buyers and sellers to be active”.
He continued: “Although we are still some way off the highs of previous years, the growing confidence in the market is promising.
“The full impact of the Budget has yet to be factored in, and, therefore, a true indication of where we are at would be around springtime, once the stamp duty holiday comes to an end.
“Let’s hope a further cut in interest rates comes before then, helping the market stay productive and confident.”
Phil Lawford, national account manager at Saffron for Intermediaries, agreed that the increase in residential property transactions was a “welcome sign, particularly after a challenging period for the housing market”.
He continued: “Concerns around inflation and a higher interest rate environment have placed pressure on buyers, but the market’s resilience remains evident. Recent discussions around loosening mortgage lending rules could provide further support, potentially making homeownership more accessible for many.
“These figures predate any resulting changes from the FCA’s recent review of lending regulation, conducted to help the government drive economic growth. While we’re not expecting a return to the historically low rates of the last decade, the prospect of more tailored, accessible lending options could help sustain this positive momentum for buyers. Now more than ever, seeking advice from a professional mortgage adviser is crucial to finding the right product amidst a complex shifting landscape.”
