"October’s results highlight the unpredictable nature of our housing market by showing a monthly rise in the number of property transactions."
However this month’s seasonally adjusted figure is 8.0% lower compared with the same month last year.
For October 2016 the number of non-adjusted residential transactions was about 6.2% lower compared with September 2016. The number of non-adjusted residential transactions was 16.4% lower than in October 2015.
Stephen Smith, Director, Legal & General Housing Partnerships, commented: “Despite last month’s annual and monthly decrease in transaction numbers, October’s results highlight the unpredictable nature of our housing market by showing a monthly rise in the number of property transactions. These figures confirm that the appetite for home ownership remains strong as we draw to the end of 2016.
“However, it is important that we put these figures into perspective: the imbalance between supply and demand is continuing to overwhelm the market, pushing up prices and causing affordability to worsen. Until this dangerous disparity is addressed the market, and wider economy, will continue to suffer. Tomorrow will be a defining moment for the UK when Phillip Hammond delivers his first Autumn Statement. Our new Government has the perfect opportunity to repair our nation’s broken housing market and implement innovative house building measures across all tenures to solve our housing crisis once and for all.”
Stephen Wasserman, Managing Director of West One Loans, said: “Today’s figures are a positive indication that the recent market drought experienced may be coming to an end. As the market starts to pick up, we anticipate many buyers, buy-to-let and second home buyers will start to emerge from the woodwork once again.
"If this positive sentiment continues, we expect to see an increase in demand for short term finance, such as bridging loans, as purchasers look to stabilise property chains and snap-up new opportunities as they come to market. However, it’s crucial the industry works to boost the availability of competitive and suitable financing options to support the market’s continued recovery.”
Andy Sommerville, Director of Search Acumen, added: “After witnessing a 4.3% decrease between August and September, it is encouraging to see the seasonally adjusted UK property transaction count return to growth in October. Confidence appears to be on the up and buyers are beginning to return to the market as the Brexit dust somewhat settles.
“While we are right to feel positive about the market’s short-term resilience, the year-on-year image is still rather bleak. Residential transactions were down 8% in October 2016 compared with the same month a year earlier and all eyes are on Phillip Hammond to tackle the deep-rooted issues that long predate the EU referendum. Tomorrow’s Autumn Statement is an opportunity to put some spring into the step of UK housebuilders and revive the homeownership aspirations of a generation of renters left behind by the market.”
