The number of housing transactions made in July this year dipped marginally by 1% to 90,630 this July according to the latest figures from HMRC.
Despite this slight decrease, this figure is 7% higher than the transactions completed during the same month last year, suggesting steady growth for the housing market. With the Bank of England reporting today that mortgage approvals have rebounded to their highest level since September 2022, it seems the market is set for a busy autumn.
Commenting on the statistics, Nathan Emerson - CEO of Propertymark - commented:
“It is encouraging to see the number of property transactions continue to increase overall and we expect to see a further uplift later on now that the Bank of England has started on the journey of cutting interest rates. The UK Government has an opportunity to establish a new level of confidence in the housing sector when they return from their summer recess by setting down what potential schemes may be available to first-time buyers over the coming twelve months. Propertymark is keen to learn more at the first opportunity on the expected timeframes to deliver nearly two million homes across the next parliamentary term – it is vital that pressure on current demand is eased as soon as possible."
Jason Tebb, President of OnTheMarket, said:
“With transaction figures ticking up year-on-year and mortgage approvals, which indicate the future direction of travel for the market, at their highest level since September 2022, buyers and sellers are growing in confidence.
“This uptick in activity, fuelled by the Bank of England’s decision to cut interest rates and assisted by lenders trimming their mortgage rates, suggests the worst of the nervousness is behind us. However, affordability remains an issue, reflected in the fall in house prices in August, so sellers must be realistic when it comes to pricing.
“The stage is set for a brisk Autumn although concerns remain as to what the Budget might bring."
Tony Hall, Head of Business Development at Saffron for Intermediaries, comments:
“While today’s figures are not what we expected, the housing market still looks poised for a busy autumn. With the Bank of England’s first interest rate cut since 2020 last month, we’re seeing a wave of new sub-4% deals energising the mortgage market. Buyers are eager to jump back in, and with Zoopla reporting that listings have hit a seven-year high, this momentum will only grow further.
“That said, there will still be hurdles for prospective buyers as today’s market is a different ballgame compared to the years of ultra-low rates we had before. That’s why borrowers need to explore the growing range of mortgage options out there. Whether you’re a first-time buyer, self-employed, or building your own home, there’s a product designed to meet your specific needs, making it easier for more people to find a mortgage that fits and secure the home they want.”