According to the latest data from HMRC, property transactions witnessed an uptick in September, rising 5% from August and 2.3% from September 2018.
UK property transactions hit 101,740 in September, according to HMRC’s provisional seasonally adjusted estimate. The figures hint that there is vibrant housing market waiting beyond the Brexit uncertainty. The news follows an analysis which suggests a competitive mortgage market is easing buyers back into the market.
Founder and CEO of Springbok Properties, Shepherd Ncube, said: “A seasonally inspired spike in transactions will be welcomed across an otherwise weary market landscape and while uncertainty continues to dominate the property sector, this late rally in the number of homes being sold proves there is plenty of life in the old dog yet.
“There remains a huge appetite for homeownership across the UK and while transactions may have plateaued in recent years, they have remained consistently stable, with pent up demand from homebuyers occasionally giving way in the form of a monthly spike in sales.
“This will continue to be the case until we finally receive some degree of certainty on our future with the EU, at which point the floodgates of buyer demand should open and see transactions increase once again. Until that point, slow and steady is certainly the theme across the UK property market and while nothing spectacular will materialise on a short-term basis, we remain in a good position.”
Residential transactions have been relatively stable over the last 10-years, since the market crawled out of the bunker created by the financial crisis in 2007. Prior to this, transaction counts had risen steadily, peaking in mid-2006.
Neil Knight, business development director at Spicerhaart Part-Exchange and Assisted Move, said: “If you take into account the ongoing uncertainty around Brexit – and there’s just a glimmer of light at the end of that particular tunnel – this paints a pretty rosy picture. We’re certainly continuing to see strong demand at Spicerhaart and I’m hopeful that if MPs can now get Brexit sorted, we will see a lot more confidence return to the market.
“We’re also looking to the Chancellor to make some changes to Stamp Duty, which is having a very damaging effect on people looking to move home.”
However, transaction data is only one component of the property market. While a sole set of figures can be an indicator of better times to come, they can’t give a clear picture of the reality.
Josef Wasinski, co-founder of Wayhome, said: “Whilst these figures indicate positive movement on the property market, the reality is that significant numbers of people, on good salaries, cannot surmount the upfront costs that go along with homeownership.
With mortgage lenders requiring deposits of more than 10 percent in many cases, owning a property is getting further out of reach for perfectly creditworthy ‘reluctant renters’ unless they make compromises on size, location or transport links.
“This homeownership gap can only be addressed through a concerted effort from both Government and those focusing on helping First Time Buyers so people have a viable, alternative route onto the property ladder.”
Vadim Toader, founder and CEO of Proportunity, added: “Today’s figures show signs of life in the market despite Brexit uncertainty, which is great. However, for far too many people home ownership remains beyond reach, with high rents and weak wage growth eating into the ability for people to save up for a deposit.
“First time buyers pay reduced stamp duty, but they still have to pay up front costs in terms of legal and surveying fees. Those who can’t rely on the bank of mum and dad to help them out need another option, and with the government planning to wind up HTB, alternative solutions are needed.”
