New data from HM Revenue & Customs has revealed the number of UK residential property transactions in May 2024 was 24% higher than the same month in 2023.
The provisional non-seasonally adjusted estimate of the number of UK residential transactions in May 2024 is 912,660, 24% higher than May 2023 and 18% higher than April 2024.
Looking at the same data on a seasonally adjusted basis, HMRC said that transactions in May 2024 is 91,290, 17% higher than May 2023 and 2% higher than April 2024. In response to National Statistics UK Monthly Property Transactions, Nathan Emerson CEO Propertymark, commented:
“Since the start of the year, the housing market has seen a much-anticipated traction return and it’s extremely positive to see a trend of growth finally emerging again. Now that inflation is down within the initially targeted range, over the coming months we are optimistic to see a cut in base rates from the Bank of England. When this does happen, it will help reinforce further progression and bring a more consistent marketplace.”
Maria Harris, chair of the Open Property Data Association said that it’s “very promising” to see that UK residential transactions have bounced back in May after a dip in April. She continued:
“The recent fall in inflation to at last meet the Government’s target is also a reason for optimism and we can dare to hope that the Bank of England might lower interest rates by the Autumn.
But housing transaction volumes rely heavily on consumer confidence. No matter which party forms the next Government after next week’s General Election, we will continue to deal with a broken housing market unless new ministers tackle this urgently. Top of the list should be digitising our property data and resolving the notoriously sluggish homebuying process. Sharing digital property information across the housing market is a vital first step towards improving customer confidence in the homebuying and moving process and will slash contract exchange times significantly, contributing millions to GDP.”
Andrew Lloyd, Managing Director at Search Acumen, said:
“The uptick in commercial property transactions for May is a welcome sign of resilience in the real estate sector, demonstrating that the looming General Election has not yet deterred investors against a wider economic picture of stability. This positive result after a downward swing in commercial real estate investment in the first quarter of the year could signal a turning point for the industry, potentially ushering in a more dynamic period for both residential and commercial sectors alike.
Whilst we must rightfully underscore gains in an uncertain market, cautious optimism remains the most sensible takeaway of today’s results. It is positive to see investors focus on the fundamental strengths of prime assets and emerging opportunities in sectors such as technology and life sciences. This selective approach to investment highlights the importance of detailed, reliable property data in informing strategic decisions and supporting faster deals. However, it will remain challenging to predict the bigger impact of the General Election on investors more broadly, as the wheel of fortune also lies in the hands of the Bank of England for a long-awaited interest rate reduction to stimulate growth.
Looking ahead, whilst challenges persist, there is a sense of ‘steady as she goes’ that is keeping momentum moving. For those of us in the property data and search sector, this reinforces the need to continue to innovate and provide the tools for lawyers and investors to act swiftly and confidently, moving deals ahead at full steam to help navigate market sensitivities.”
Chris Little, Chief Revenue Officer, finova said that dspite the affordability constraints of the last year, today’s uptick in transactions tells a “resilient story for the market”. He continued:
“…and the absence of a rate cut clearly hasn’t dampened enthusiasm either. Naturally, there still remains a buzz of anticipation for a potential base rate drop this summer, which could entice buyers who’ve been on the sidelines to jump back in. Market certainty following the election should also go some way to boost borrowers’ confidence, turning homebuying into a question of ‘when’, not ‘if’.
As competition heats up with expected rate drops this summer, lenders must harness technology to streamline property transactions. Borrowers now demand seamless services, not to jump through hoops with outdated legacy systems. Embracing dynamic pricing engines early will give lenders a competitive edge, simplify new product launches, and elevate the experience for borrowers, savers, and brokers.”
