HMRC records annual property sales rise but more stock needed
Annual property sales are rising annually, according to HMRC data, but are becoming stagnant on a monthly basis due to restricted stock, a senior agent has warned.
It comes as HMRC data shows a 9% annual increase in property transactions at 91,820, up just under 1% on a monthly basis.
The figure is 94,800 on a non-seasonally adjusted basis, 2% higher than September 2023 and 9% lower than August 2024.
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.
“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.”
Matt Thompson, head of sales at Chestertons, added:
“In September, sub-4% mortgage products as well as lower interest rates motivated house hunters to start or finalise their property search.
“This uplift in buyer interest enticed sellers to put their property up for sale sooner rather than later which provided buyers with a larger pool of properties to choose from.
“We currently have 17% more properties under offer than in 2020 and still register new house hunters entering the market.
“We expect this level of buyer activity to continue over the coming weeks, especially if the Bank of England announces another rate cut next week.”
Nathan Emerson, chief executive of Propertymark, said the market is looking positive, adding:
“However, there are some aspects contained within yesterday’s budget which are extremely disappointing, with first-time buyers feeling the brunt, as the current Stamp Duty threshold is lowered back to £300,000 from next April being an example.
“Typically, this would mean an additional tax liability of £6,250 for those hoping to get on the housing ladder on a home priced at £425,000.”
Kindly shared by Estate Agent Today
