According to the HMRC (His Majesty’s Revenue and Customs) monthly property transactions data for August, the number of completed sales of both residential and non-residential properties in the UK has risen by 1% compared with July, making it the third consecutive month to show an increase in transactions.
That said, seasonally adjusted transactions remain 16% lower than in August 2022.
Non-residential transactions show a similar story, with seasonally adjusted figures 4% higher than in July 2023, but 3% lower than August 2022.
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “Another uplift in property sales is a positive sign that the industry is recovering after a slow first half to the year. Estate agents have been enticing more sellers onto the market to give more choice to buyers when it comes to finding the right property.”
He added : “The annual picture still shows a significant drop off in sales at 16%, but nothing different to what we were forecasting at the start of the year. If anything, our predictions of an overall fall of 20% for 2023 may even be revised thanks to the consecutive months of increases we have seen. The lower than average levels of mortgage approvals are partly responsible for the decline, but as inflation creeps down, and the Bank of England continues to hold off interest rate hikes, we may see that trend subside.”
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, said that the property market had remained resilient in August. “It’s a clear sign that many buyers have got used to the higher interest rate environment and remain determined to move home, as many of these sales will first have had offers agreed in May, when the base rate rose for a 12th successive time,” she explained. “The suggestion that we may have nearly reached the peak in interest rates is encouraging more people to begin or resume their house search. This, combined with the traditional seasonal spike in demand, is helping to drive increased activity this autumn.”