The latest data released by HMRC this morning revealed that UK residential property transactions fell in January.
The provisional non-seasonally adjusted estimate of the number of UK residential transactions in January 2024 was 68,090. This figure is 10% lower than January 2023 and 20% lower than December 2023.
Meanwhile, the Bank of England’s latest Money & Credit data showed that mortgage approvals for house purchases rose from 51,500 in December to 55,200 in January, indicating future borrowing remains promising. In addition, net approvals for remortgaging remained stable at 30,900 in January and the ‘effective’ interest rate, the actual interest paid, on newly drawn mortgages fell by 9 basis points, to 5.19% in January.
Jason Tebb, President of OnTheMarjet, shares his comments on the latest market insights below:
“January’s fall in non-seasonally adjusted transactions comes as no surprise as those sales would have been agreed some months before when mortgage rates and inflation were significantly higher. With the Bank of England reporting an encouraging increase in approvals for house purchases in the same month, indicating future borrowing, this reflects the uptick in enquiries and stock levels which many estate agents have seen in their offices since the start of the year.
Activity and confidence have been boosted by lower mortgage rates and dipping inflation. There are high hopes that the Bank of England will start cutting rates sooner rather than later, and that the Chancellor might have something in his Budget to help first-time buyers in particular.
Sellers must continue to price sensitively as buyers still have affordability concerns as they get used to higher mortgage rates. But as the weather improves, those waiting for the ‘right’ moment to come to market may find this spring provides the perfect opportunity.”
