Residential transactions fell by 22 per cent in November 2023, compared to the year before, data from HM Revenue and Customs has shown.
The latest UK monthly property transactions found the number of non-seasonally adjusted transactions reached 87,640 in November of this year, 22 per cent less than November 2022.
This was also 2 per cent lower than the number of transactions recorded the month before in October 2023, representing the third consecutive month transactions had fallen.
MT Finance director, Tomer Aboody, attributed this lower level of transactions to "less confidence in the housing market, along with higher mortgage costs”.
This meant that buyers and sellers were not motivated to transact, he said.
HMRC reported the provisional seasonally-adjusted estimate of the number of UK residential transactions in November 2023 amounted to 80,780.
This was 22 per cent lower than the number of transactions in November 2022 and 1 per cent lower than in October 2023.
Propertymark CEO, Nathan Emerson, said: “2023 has not been without challenges for the housing market, with price fluctuations being a strong indicator of wider economic health.
“We have seen a brutal mix of high inflation and elevated interest rates knock consumer confidence across the year."
However, Emerson additionally stated: "Propertymark are positive that the peak of the turmoil is now hopefully behind us; however, we must tread with caution over the coming months.”
Similar positivity for the future was displayed by Aboody who added there should be “more encouraging signs” to come in 2024 as rates “seemed to have peaked and inflation is reducing”.
This will “hopefully” translate into a stronger market with an uptick in transactions.
Additionally, SPF Private Clients chief executive, Mark Harris, stated: "Encouragingly, the direction of travel for new mortgage rates is downwards, with fixed rates looking increasingly attractive.”
However, Harris cautioned that borrowers do have to accept that they will pay considerably more now than in the heady days of sub-1 per cent mortgages.
He explained: "With the Bank of England holding rates again at the December meeting, this has further reinforced the belief that base rate has peaked and the next move will be downwards, which will provide a welcome boost.”
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
