UK housing market conditions continue to steadily improve, supported in part by greater mortgage affordability, which has been easing thanks to strong wage growth and falling interest rates.
This positivity is now filtering through with respect to transactional volumes, with the latest official data suggesting that the number of monthly sales completing across the UK property market in August tipped the 100,000 threshold for the first time since December 2022.
Guy Gittins, chief executive of Foxtons, said: “Increased mortgage market certainty is allowing UK buyers to act with greater confidence and we’ve seen the rates available on many mortgage products continue to trend downwards since a hold on the base rate in September of last year.”
“The latest government figures show that in August, the number of monthly transactions exceeded the 100,000 threshold for the first time since December 2022. A very positive sign indeed and a strong indication that the market is now returning to form,” he added.
Following the first base rate reduction in four years at the start of August, the number of transactions seen throughout the month increased by 7.6% versus July, with 104,330 transactions completing across the UK property market in August.
The co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “We’ve seen a high level of property market positivity so far this year and there’s no doubt that a hold on interest rates has helped to bring a greater degree of confidence to the market, with buyer activity in the way of mortgage approval levels increasing consistently in recent months.
“However, whilst this greater level of stability has helped entice buyers back to the fold, it’s only now that we’re seeing this filter through to an increase in transactional volumes, with total UK transactions exceeding the 100,000 threshold for the first time in almost two years.
“This is, of course, due to the time required to push a sale through from offer accepted to complete and so whilst the outlook for the year is good, we’re unlikely to see the market return to full strength until next year where transaction levels are concerned.”