Recent data from HM Revenue & Customs (HMRC) has provided a fresh perspective on the state of property transactions.

• Residential transactions in September stood at 92,600, representing a 2% decrease from August and a significant 19% drop from the same period last year.
• Non-residential property transactions, on the other hand, rose to 10,060 in September — a 7% increase from August but still a 6% decrease year-on-year.

Experts Weigh In

Industry professionals have provided various interpretations of this data to PropertyIndustryEye. Let’s explore some insights:

The Balance of Transactions

Anthony Codling of Twindig observed that the housing transactions have remained stable since June. He suggests that homebuyers are closely watching the Consumer Price Index (CPI) and mortgage rates, hinting at potential future shifts.

The Market’s Stability

Nick Leeming from Jackson-Stops highlights that despite economic challenges, the market has shown resilience. However, he also noted an increased timeframe from offer acceptance to completion, especially for lengthy chains.

Mortgage Rates and Their Impact

Frances McDonald of Savills believes that while there’s been an improvement in mortgage rates since the summer, buyers remain wary due to the rising interest rate environment. This cautiousness is evident with a significant share of cash buyers in the market.

A Cautious Approach Amid Economic Recovery

Iain McKenzie from The Guild of Property Professionals points out that despite some signs of economic recovery, many households are still struggling to buy property due to budgetary constraints.

Defying the Negative Predictions

Nicky Stevenson of Fine & Country feels that the property market continues to stand strong against negative projections. She attributes the current market dynamics to factors such as emboldened first-time buyers and home-movers with significant equity.

The Importance of Pricing

Jason Tebb, CEO of OnTheMarket, stresses that while there are motivated buyers in the market, they are extremely price-sensitive. Hence, sellers must adjust their prices if they wish to make sales before the year ends.

Market Reactions to Interest Rates

Matt Thompson from Chestertons notes that after the Bank of England’s announcement of stable interest rates, buyers felt more comfortable resuming their property searches. However, they remain cautious about their budgets in anticipation of future rate hikes.