Residential property transactions rose during the last month and were also up on the same period twelve months according to a new report.
Latest HMRC Property Transactions figures show that the number of transactions between May and June increased by 4.7%. This represented a 3.2% rise on the same period last year.[1]
Non-adjusted residential transactions were 15.7% higher in June than they were in May and 5.8% higher than in May 2014.[1]
Post-election bounce
Duncan Kreeger, director of West One Loans, commented, ‘it’s not just the housing market that is enjoying a post-election bounce, with non-residential transactions enjoying almost double the monthly improvement.’ He also said that, ‘on an annual level the contrast is even more marked, with an increase almost three times larger than the mainstream residential market.’[1]
Kreeger believes that, ‘this shows that it is not just homeowners wanting to take advantage of the current favourable economic climate and low interest rates on offer, but businesses and developers too.’ He went on to note, ‘with Bank of England Governor Mark Carney suggesting last week that interest rates could rise around the turn of the year, it makes sense for individuals-and commercial ventures-to act soon if they want to capitalise on the current situation.’[1]
Upward tempo
Peter Rollings, CEO of Marsh and Parsons, agreed with Mr Kreeger, stating, ‘property sales jumped to it in June as the UK housing market gets back into the swing of things after some recent disruptions to the tempo. This has started to make up for any shortfall in the months preceding the general election-and we’re seeing growth on an annual basis once again.’[1]
Mr Rollings notes that, ‘in London, supply of properties for sale and buyer demand are head-to-head, squaring up for steady price growth over the rest of the summer. Confidence is returning to the capital once again, particularly below £1million and buyer registrations are building as aspiring homeowners seize hold of low mortgage rates and other incentive schemes currently available t I them.’[1]
[1] http://www.propertyreporter.co.uk/property/property-transactions-up-32-year-on-year.html