Residential property transactions surged in October 2024, reaching 100,410 a 21% increase compared to October 2023 and 10% higher than the previous month, HMRC data revealed last week.
Non-residential property transactions also experienced growth, hitting 14,150 – a 42% jump year-on-year and a 40% rise from September.
Notably, non-residential transactions between April and October 2024 reached 74,410, marking the highest level in a decade and underscoring a thriving property market.
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, reckons the figures demonstrate the robust nature of the sector.
STRONG RESILIENCE
He says: “These figures, though dated, include cash and mortgaged sales so demonstrate the strong resilience of the market. Clearly, buyers were very willing to move home at a time when uncertainty was growing about the impact of the Budget and particularly higher taxes.
“Since then, activity has steadied as more property is available for sale. Demand is picking up, particularly from first-time buyers who are keen to take that initial step on the ladder before the stamp duty hike next April.”
BUYER CONFIDENCE
Myles Moloney, Area Sales Manager at Chase Buchanan, says: “At the beginning of October we saw continued buyer confidence which was boosted by favourable mortgage rates and a greater number of properties being put up for sale.
“As we were nearing the Autumn Budget however, house hunters and sellers grew more cautious.”
Iain McKenzie, CEO of The Guild of Property Professionals, says the massive spike in property sales in October indicates positive momentum in the industry and that now is still a good time to get on the property ladder.
MOTIVATING FACTOR
He adds: “One motivating factor could be the tradition of buyers wanting to get moved in before Christmas. We usually witness a rush to complete at this time of the year, as people enjoy the idea of getting their new home ready in time to get their Christmas tree up.
“Whether or not this upwards trajectory continues over the winter will be a telling sign if this frenzy of activity is here to stay.
“There is typically a seasonal slowdown in property sales at this time of the year, so we may see that reflected in these figures over the coming months.
“As inflation increased more than anticipated earlier this month, potential buyers close to reaching their deposit goals may choose to shelve plans to save in order to weather the rising energy prices and living costs.
“Now is an opportune time for estate agents to be getting out into their communities.”
“Now is an opportune time for estate agents to be getting out into their communities to convince people looking to sell that now is still a good time to list their property. When market activity picks back up in the spring, they will have a roster of properties to offer clients coming through the door.”
SURPRISING VOLUMES
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “Higher transaction volumes across the board are a little surprising as higher borrowing costs and affordability pressures have impacted buyer activity.
“As we head towards the end of the year, we expect buyers to take longer to commit.
The exodus of landlords, driven by tax and regulatory changes, has dampened activity in the buy-to-let sector, impacting overall market turnover.
“In areas where stock is limited, markets have remained steady, particularly the family home market with work-from-home potential. Homes that are well priced and well presented are still selling relatively quickly; while buyers may pause to assess financial implications, high-demand areas are likely to retain interest.”
STRONG MOMENTUM
And Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “October saw a significant rise in buyers signing on the dotted line and committing to house moves, signalling strong momentum in the housing market despite some caution following the Autumn Budget.
“This impressive 21% annual increase and 10% month-on-month growth highlights robust consumer confidence, with many eager to push forward with their plans ahead of the typical Christmas slowdown.
“While the market has seen some price adjustments following the Budget, these changes reflect sellers’ willingness to remain competitive and attract buyers. According to Rightmove, the average asking price for a UK home dipped by 1.4% in November to £366,592 — a sharper than usual seasonal decline but a potential opportunity for buyers to secure favourable deals.”
She adds: “As we approach 2025, the property market is poised to remain steady with a cautious but optimistic outlook. External factors, including government policies and the broader economy, will shape the market’s trajectory.
“For now, resilience remains a defining feature of the market, and this period of adjustment presents opportunities for both buyers and sellers to make confident, well-informed decisions.”
TREND WILL CONTINUE
Nathan Emerson, CEO of Propertymark, says: “In England and Northern Ireland especially, the trend of increasing house transactions is likely set to continue as Stamp Duty increases loom from April 2025.
“With borrowing rates also lower than this time last year, and with more homes coming to the market, this mixture has provided aspiring or current homeowners with the confidence and extra affordability to make their house move.”
LOWER MORTGAGE RATES
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Lower mortgage rates continue to boost market activity and improve transaction numbers.
“With two interest rate cuts behind us in recent months and more to come next year, buyers feel better able to commit to a property purchase.
“Swap rates have also eased, which should enable lenders to offer lower mortgage rates. This will be welcome after a few weeks where pricing has edged upwards again.”
CONFIDENCE IS PROMISING
And Tomer Aboody, director of specialist lender MT Finance, adds: “A quite significant increase in transaction numbers compared with this time last year shows how reduced interest rates have encouraged buyers and sellers to be active.
“Although we are still some way off the highs of previous years, the confidence in the market is promising.
“We also need to realise that the full impact of the Budget has yet to be factored in, and therefore, a true indication of where we are at would be around spring next year.
“Let’s hope a further cut in interest rates comes before then, helping the market stay productive and confident.”
