"Transaction levels are becoming more stagnant month on month due to the lack of available stock on the market at this time which would enable more purchases. "
- Nick Leeming, chairman of Jackson-Stops
The number of residential property transactions totalled 94,800 in September, 2% higher than September 2023 but 9% lower than August, the latest HMRC statistics show.
On a seasonally adjusted basis, transactions were 9% higher than September 2023 and marginally higher (less than 1%) than in August.
Nick Leeming, chairman of Jackson-Stops, said: “The short delay in transaction data shows us the immediate boost that the outcome of the election provided the housing market, with buyers pressing on with their searches amid falling interest rates and positive wage growth. Yet, transaction levels are becoming more stagnant month on month due to the lack of available stock on the market at this time which would enable more purchases.
“Despite yesterday’s theatrics in the Budget, the property market remains in largely the same position as before. Making £5bn available for housebuilding is very significant, but until spades hit the soil there is no material change for the market.
“The Budget missed a clear opportunity to introduce stamp duty reform, something that could have also helped to stimulate greater activity within the market. This is a reform that many market commentators were already expecting, and one that the UK public is on board with. Jackson-Stops’ own research revealed that one in four people across the UK were supportive of a change to stamp duty. Though the decision to keep housing policy changes light yesterday shouldn’t spook buyer confidence, we hope this will only be strengthened further by falling inflation and better borrowing conditions.”
Gareth Lewis, managing director of MT Finance, commented: “It is good to see a small increase in transactions in September. The small increase on the previous month may be partly down to the fact that August was relatively buoyant and busier than usual as people got their holidays out of the way early.
"The housing market is moving in the right direction but we will wait to se what happens in response to the Budget and whether some purchases fall by the wayside as a result of the surprise increase in stamp duty on buy-to-let and second homes.
“If Swaps don’t soften in coming days, mortgage rates will start to edge up as the market reprices.
"While we appreciate there is a financial hole to plug, the government does need property transactions as they are good driver of growth for the economy.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, added: “With the Budget not as dramatic as feared from a property perspective, the ‘wait and see’ approach we have seen from some buyers, who have been more cautious than usual given the economic backdrop, will hopefully now ease.
“That uncertainty has resulted in an increase in properties coming back on the market after fall-throughs. These fall-throughs are often due to buyer nervousness, which in many cases is unrelated to the property itself and rather a reflection of economic uncertainty and tightening financial conditions.
“For now, demand remains and most properties are successfully re-agreed and sold after returning to the market. Demand for prime London locations is historically resilient; buyers may pause to reassess financial implications, but high-demand areas are likely to retain interest."
