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HMRC: November residential transactions up 19.3% on last year

UK residential transactions in November 2020 stood at 115,190, 19.3% higher than November 2019 and 8.6% higher than October 2020, according to the latest stats from HMRC.

On the non-residential front transactions stood at 9,970, 6.9% higher than November 2019 and 10.3% higher than October 2020.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Transactions are always a better indicator of market health than more volatile house prices.

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“However, despite these numbers showing a still-accelerating trend, they reflect sales which were agreed several months previously. Since then, the market has been moving closer to hibernation as is traditional at this time of year.

“It will be a few months at least before transactions fall in line with the reduced activity that we have been seeing on the ground over the past few weeks. Nevertheless, prospects for 2021 remain relatively positive bearing in mind the determination of the overwhelming majority of buyers and sellers to complete their moves even if inevitably some will miss the stamp duty deadline.”

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Paul Stockwell of Gatehouse Bank added “The UK property market has undergone an incredible turnaround this year. In the space of seven months, sales volumes have rebounded from the lowest level since records began to a five-year high in November.

“The latest data shows mortgage approvals still running at a 13-year-high so, while it’s widely accepted that the bumper house price growth we’ve seen this year must cool as we enter 2021, a decline in the number of transactions is by no means assured. Annual growth in sales volumes has actually accelerated, more than doubling in the space of a month, which is excellent news for the property market as a whole.

“It is entirely possible that volumes hold up next year, even as valuations cool after a glut of activity fuelled by the stamp duty holiday and a widespread desire to move to larger homes after repeated lockdowns.”

Source: Mortgage Introducer

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HMRC: Residential transactions see monthly increase of 15.6%

Residential transactions saw a monthly increase of 15.6% in August according to the latest UK Property Transactions Statistics by HMRC.

Despite the monthly increase, year-on-year the figures show that the August figures (81,280) are 16.3% lower than August 2019.

There were 8,350 non-residential transactions in August, which is a yearly decrease of 15.5% and monthly increase of 7.5%.

HMRC’s data reveals that the residential transactions for Q2 was the lowest quarterly total since Q1 2009 following impact from the COVID-19 pandemic.

Mark Harris, chief executive of SPF Private Clients, said: “Despite only being introduced the previous month, the stamp duty holiday was already filtering through to transaction numbers in August as buyers rushed to take advantage of the saving.

“Despite the recovery in number of transactions compared with the previous month, the pandemic has had a significant impact on the market with August’s numbers down significantly on last year’s.

“The data illustrates just how long it takes for property transactions to complete and at the moment, with some lenders struggling with service levels, along with surveyors and lawyers, it is all taking longer than it usually would.

“Buyers need to be patient, as well as engage good advisers who can help steer the transaction through in as prompt a fashion as possible.”

Alan Cleary, managing director for mortgages at OneSavings Bank, added: “After a rocky start to the year, the continued uptick in activity is not only good for the market, but for buyers and sellers who are finally making progress with their property plans.

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“People on both sides want to make the most of low borrowing costs and the temporary removal of stamp duty which for now at least is helping to bolster the market.

“However, as we head into the often quieter months of the year, the uncertainty around the UK economy could mean that the strong levels of activity leading up to this point may start to wane.”

Jeremy Leaf, a former RICS chairman, believes that the market is showing determination to get transactions through.

Leaf said: ‘Transactions are a better barometer of market health than more volatile house prices.

“Although a little historic, and there is a delay between the point when the sale is agreed and completion, these numbers still demonstrate considerable resilience when we were emerging from the previous lockdown and before the stamp duty holiday could have much impact.

“On the ground, we have noticed no sign of sales collapsing, renegotiating on deals or price reductions in the past few days – more of a determination to carry on.”

By Jessica Nangle

Source: Mortgage Introducer

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Better later than never? Property market springs back to life in May

The typical spring bounce in the property market may have started slightly later this year, as HMRC data shows a 12.1% boost in transactions during May.

HMRC’s property transactions statistics had registered a fall in sales during April, but the latest data suggests a more positive market.

The taxman recorded 95,480 residential property transactions last month, up 12.1%  on April  but down 1% annually.

All UK regions saw a monthly rise, with the Welsh market up 25.2% to 4,460 transactions, and England saw a 12.4% boost in sales to 80,900.

Transactions in Scotland were up 3.6% to 7,970 on a monthly basis while Northern Ireland saw a 10.8% jump over the month to 2,150 deals.

Compared with the same period last year, Wales and England were down just 0.4% and 0.5% annually, while Scottish transactions slid 7%.

Only Northern Ireland saw an increase in sales annually, up 1.8%.

The figures are less impressive on a seasonally adjusted basis, up 0.8% between April and May, and 0.5% annually to 99,590.

Commenting on the non-adjusted figures, Neil Knight, business development director of Spicerhaart Part Exchange & Assisted Move, said: “While we are still nowhere near the levels we were seeing before the credit crunch – when the number of transactions had risen constantly over a number of years to reach a peak of around 150,000 per month – it is a marked increase, and could suggest we will start to see a bit of an uplift, especially in the new build sector.

“We are currently working with a range of house builders that have got lots of big developments in the pipeline.

“The focus on new housing over the past few years – with incentives such as Help to Buy – is starting to boost the new-build sector, and while we are unlikely to hit the Government’s targets, we are at least moving in the right direction, and this should help boost the rest of the property sector too.”

Source: Property Industry Eye