New research by estate agent comparison site, GetAgent.co.uk, has shown that recent market confidence is now being reflected in transactional volumes, with completed monthly sales totalling over 100,000 for the time since December 2022.
GetAgent analysed the latest Gov UK data on the average number of monthly transactions seen between December 2021 and August 2023 whilst interest rates were climbing and how this level of market activity has changed since September 2023 when the Bank of England first held the base rate at 5.25%.
The research shows that, between December 2021 and August 2023 when interest rates were climbing consistently, an average (median) of 99,510 transactions completed across the UK market on a monthly basis.
During this time, the number of transactions completed also increased by an average of 2.2% per month.
The analysis also shows that between September 2023 and July 2024 – the period during which the base rate was held at 5.25% – the average number of transactions seen on a monthly basis fell to just 87,940 per month – declining at an average monthly rate of -2.2%.
The latest figures for August suggest that property market positivity is starting to filter through to transactional volumes following the first base rate reduction in four years, increasing to 104,330, a 7.6% rise on the previous month.
Co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “We’ve seen a high level of property market positivity so far this year and there’s no doubt that a hold on interest rates has helped to bring a greater degree of confidence to the market, with buyer activity in the way of mortgage approval levels increasing consistently in recent months.”
“However, whilst this greater level of stability has helped entice buyers back to the fold, it’s only now that we’re seeing this filter through to an increase in transactional volumes, with total UK transactions exceeding the 100,000 threshold for the first time in almost two years.”
“This is, of course, due to the time required to push a sale through from offer accepted to complete and so whilst the outlook for the year is good, we’re unlikely to see the market return to full strength until next year where transaction levels are concerned.”
