Residential property transactions were down 16.4% in November when compared to the same period in 2020 as the Stamp Duty holiday came to an end, official figures reveal.
However, the picture looked better on a monthly basis as 96,290 residential property transactions took place during the month, a 24.3% increase on October.
Stuart Wilson, corporate marketing director, more2life, said: “November activity was reflective of that witnessed earlier in Q4. While activity did not reach the levels seen during the stamp duty holiday, it still remained high, spurred on by the record low base rate.
“At the older end of the market, we continued to see older buyers using equity release to purchase their dream home, with the average property purchased with the support of equity release costing £362,742, over £7,500 higher than the average for all properties.
“That said, 2022 looks likely to be another uncertain year, with further restrictions seemingly likely to be put in place by the government and the Bank of England raising interest rates for the first time in three years.
“Against this backdrop, equity release will continue to be an important financial tool for many homeowners, whether that’s to help them fund day-to-day costs, help loved ones financially or move to a home more suited to their needs.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Transaction numbers picked up again in November, following October’s dip, as buyers carried on transacting, buying homes with more space in more far-flung locations now that they no longer need to be in the office every day.
“Despite a rate rise in December, we expect transaction numbers to hold up during what is usually a quieter month for the market as people turn their attention to the festivities. The market is certainly less frenzied than it has been but there is still plenty going on.
“Mortgage rates remain low, despite the base rate rise, and are likely to do so into next year. Banks still have plenty of cash to lend and are keen to do so, which will help buyers realise their property dreams.”
Anna Clare Harper, chief executive of property consultancy SPI Capital, said: “Housing transactions are important because they drive house prices, which both reflect and affect our confidence, and the economy.
“There were 96,290 housing transactions in November 2021, 16.4% lower than November 2020 and 24.3% higher than October 2021. Interestingly, this is not far off the daily number of new Covid cases, a figure which will no doubt begin to impact housing transactions in due course as restrictions and nerves influence people’s ability to buy a new property. The logistics of conveyancing and ultimately moving home are all made much harder with such sharply rising cases of Covid.
“So, in the absence of government involvement, in particular through reduced stamp duty, we can expect a general slowdown in housing transactions going forward.
“A significant reduction in house prices is unlikely in the medium term, since even a rise in interest rates as we have seen this month will not outweigh the general shortage of housing stock as an influence on prices.”
Richard Pike, Phoebus Software sales and marketing director, concluded “After the dip in October it is good to see that non-seasonally adjusted transactions recovered in November, against some expectations.
“Appetite has never been in question, there are plenty of people still looking to move or remortgage, and that is only likely to continue now that the Bank of England has made its first base rate increase.
“It will be interesting next month to see if the news of the increase made any difference to current appetite, or whether it gave people even greater impetus to tie themselves into a better deal before a second increase.”
