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The number of residential property transactions increased between September and October, according to the latest Property Transaction Statistics from HMRC. In October, the volume of non-adjusted residential transactions rose compared to the same month last year. Seasonally adjusted figures show that October’s transactions are 6.3% higher compared with the corresponding month in 2014. The seasonally adjusted data reveals that 105,490 residential property transactions took place in October – the fifth consecutive month that home sales have cleared 100,000, putting activity in a whole other league to the first half of 2015. But sales still remain significantly below the monthly tally of almost 150,000 recorded at the height of the property boom in 2006. Andrew Bridges, managing director of Stirling Ackroyd, commented: “Numbers matter when it comes to housing. Talk of house prices gets the pulse racing, but the number of people in new homes is the most permanent symptom of success in the property market. And on that measure the news is good – the residential market is moving again, with transactions growing at least as quickly as annual property price rises across the UK.” Taking into account seasonal adjustment, property sales are indeed going from strength to strength, and showing great improvement from this time last year, according to Peter Rollings, CEO of Marsh & Parsons. He said: “There has been a slight correction [in property transactions] on a monthly basis, but we’re still head and shoulders above a year ago, as buyers ride high on the wave of low interest rates and attractive mortgage products.” In the London market, demand for property continues to grow despite spiralling house prices. To keep up with the pace of population, the number of new homes being delivered needs to increase substantially to prevent a further surge in values. Rollings added: “In London, supply and demand are moving in different directions. We’ve seen the number of available properties for sale fall 5% during Q3, compared to a 4% boost in buyers over the same period. As a result, there are currently 14 buyers competing for every home on the market in the capital.” Where property is priced sensibly, it is changing hands quickly, but if not, there is still a lot of hesitation in the mix in London. With a lot more stamp duty riding on transactions now, purchase decisions are more price sensitive than a year ago. |
