"A dip in transaction volumes shows that higher borrowing costs and affordability pressures are inevitably impacting buyer activity."
- Amy Reynolds, head of sales at Richmond estate agency Antony Roberts
The number of residential property transactions totalled 92,640 in November, 13% higher than November 2023 but 8% lower than October, according to the latest HMRC statistics.
Non-seasonally adjusted residential transactions decreased by 6% in November from 104,440 in October.
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, commented: “These figures offer valuable insight into overall activity and are a key indicator as to how the market is likely to shape up in early 2025.
“A dip in transaction volumes shows that higher borrowing costs and affordability pressures are inevitably impacting buyer activity. That said, this month we have been seeing a good number of market appraisals, which is often a precursor to a strong Spring market.
“In areas where stock is limited, markets have remained steady, particularly the family home market with work-from-home potential. Homes that are well priced and well presented are still selling relatively quickly; while buyers may pause to assess financial implications, high-demand areas are likely to retain interest."
Tomer Aboody, director of MT Finance, said: "A quite significant increase in transaction numbers compared with this time last year shows how reduced interest rates have encouraged buyers and sellers to be active. Although we are still some way off the highs of previous years, the growing confidence in the market is promising.
“The full impact of the Budget has yet to be factored in, and therefore, a true indication of where we are at would be around the spring, once the stamp duty holiday comes to an end.
"Let's hope a further cut in interest rates comes before then, helping the market stay productive and confident."
Nathan Emerson, CEO of Propertymark, added: “With more competitive interest rates than this time last year, growing numbers of homes coming to the market, and a rush from many buyers and sellers to beat the rises to stamp duty commencing from April 2025 in England and Northern Ireland, the overall mix of market conditions has inspired many and, in numerous cases, provided the extra confidence and affordability people were waiting for to make their first or next house move.
“We anticipate a busier than normal first quarter of 2025. However, activity will likely settle back down to more expected levels, allowing people to comprehensively review the market and negotiate their next move without the pressure of a stamp duty deadline.”
