Underlying confidence in property market

There is an underlying confidence in the property market despite HMRC figures showing a drop in property transactions.

Underlying confidence in property market

The number of residential property transactions fell by 1.8% between August and September, according to the latest seasonally-adjusted HMRC figures. However, the figure is 4.6% higher than the same month last year.

Overall, the provisional seasonally-adjusted figures show that 100,850 residential transactions took place during September. On a non-adjusted basis residential transactions were about 6.8% lower compared with August. However, again, this was 1.2% higher than in the same month last year.

Jeremy Duncombe, director, Legal & General Mortgage Club, believes government intervention is needed as currently those renting can’t ever see themselves being in a position to buy.

“The only way we will see transaction numbers grow is with an injection of activity into the housebuilding sector that has to be led by No 10,” said Duncombe.

“It’s great that housing is a key issue for this Government, but only time will tell if they can deliver on their promises. Otherwise, intergenerational inequality in the housing market will continue to rise, with Generation Rent struggling to become Generation Buy.”

For property investors this is good news, says Stephen Wasserman, MD of West One Loans.

Despite today’s figures showing a slight month-on-month decrease in property transactions, it’s important to note the figures show an almost 5% increase from the same time last year – this demonstrates an underlying confidence in the market, even at a time of continued economic and political turbulence,” he said.

“It’s been a challenging year, especially considering June’s snap election and last year’s stamp duty increase, but the property market has proven its resilience and we are cautiously optimistic that this upward trend will continue in the months ahead.

“During such times, however, it’s vital that investors are aware of the array of financing options available. Fast and flexible financing options, such as bridging loans, can speed up the process and enable buyers to capitalise on opportunities in the uncertain environment.”

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