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Residential transactions down for third month in November

UK residential property

The provisional seasonally adjusted UK residential transactions in November 2023 are 80,780; 22% lower than November 2022 and 1% lower than October 2023

Residential transactions dropped for the third successive month in November with seasonally and non-seasonally adjusted transactions down by 1% and 2% respectively, show the latest figures from the HMRC.

The provisional seasonally adjusted UK residential transactions in November 2023 are 80,780; 22% lower than November 2022 and 1% lower than October 2023.

While the non-seasonally adjusted estimate of the number of UK residential transactions in November 2023 are 87,640; 22% lower than November 2022 and 2% lower than October 2023.

According to the HMRC data, while non-seasonally adjusted residential transactions have dropped by 22% since November 2022, the non-residential sector has remained steadier with a less than 1% rise in transactions over the past 12 months.

Similarly, non-seasonally adjusted non-residential transactions increased by 4% relative to October 2023 with seasonally adjusted figures up by 3%.

The provisional non-seasonally and seasonally adjusted estimate of the number of UK non-residential transactions in November 2023 are 10,250 and 9,900 respectively.

The data is based on records by HMRC, Revenue Scotland, Welsh Revenue Authority, Land and Buildings Transaction Tax and Land Transaction Tax.

It looks at monthly property transactions completed in the UK with value of £40,000 or more.

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: Transaction numbers have dropped again in the face of higher mortgage rates and the cost of living, as borrowers re-evaluate what they can afford to pay.

Encouragingly, the direction of travel for new mortgage rates is downwards, with fixed rates looking increasingly attractive. Nevertheless, borrowers do have to accept that they will pay considerably more now than in the heady days of sub-1% mortgages, he said.

He added: With the BoE holding rates again at the December meeting, this has further strengthened the belief that base rate has peaked and the next move will be downwards, which will provide a welcome boost.

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