"The re-emergence of competitive sub-5% products, with rates as low as 3% for those able to shop around, is adding an extra layer of optimism."
- Chris Little, chief revenue officer at finova
Residential property transactions totalled 100,410 in October, 21% higher than October 2023 and 10% higher than September, according to the latest figures from HMRC.
On a non-seasonally adjusted basis, sales were 23% higher than October 2023 and 17% higher than September.
Chris Little, chief revenue officer at finova, commented: “Today’s data highlights the resilience of the housing market, which remains in good shape, even despite pre-Budget jitters last month. Mortgage approvals have also reached a two-year high, signalling renewed confidence from both buyers and lenders after a few challenging years. Equally, the re-emergence of competitive sub-5% products, with rates as low as 3% for those able to shop around, is adding an extra layer of optimism. There’s a growing sense of light at the end of the tunnel, especially with another potential base rate cut on the horizon.
“Looking ahead, the expected rush in transactions early next year, driven by stamp duty changes, is a golden opportunity for lenders to leverage new tech innovations and to streamline their processes. Innovation is likely to take centre stage next year, and Halifax’s bold launch of a 1.5-year fixed rate remortgage product could hint at what’s to come. As lenders compete to offer buyers greater flexibility as rates stabilise, we’re likely to see even more dynamic products enter the market next year.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Lower mortgage rates continue to boost market activity and improve transaction numbers. With two interest rate cuts behind us and more to come next year, buyers feel better able to commit to a property purchase.
“Swap rates have also eased, which should enable lenders to offer lower mortgage rates. This will be welcome after a few weeks where pricing has edged upwards again."
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, added: “Higher transaction volumes across the board are a little surprising as higher borrowing costs and affordability pressures have impacted buyer activity.
“As we head towards the end of the year, we expect buyers to take longer to commit. The exodus of landlords, driven by tax and regulatory changes, has dampened activity in the buy-to-let sector, impacting overall market turnover.
“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."
