Seasonally adjusted residential transactions in April showed a fourth consecutive month-on-month increase, rising 5% from 86,420 in March 2024 to 90,430, HMRC has revealed.
Non-seasonally adjusted residential transactions fell by 9% in April relative to March.
Seasonally adjusted residential transactions were 10% higher than in April 2023.
This increase in residential transactions in April 2024 coincided with the reduction in the higher rate of Capital Gains Tax (CGT) for disposals of residential property.
The data also revealed that seasonally adjusted non-residential transactions in April increased by 3% relative to March.
Non-seasonally adjusted non-residential transactions decreased by 7% relative to the month prior, while seasonally adjusted non-residential transactions were 4% higher than the same month last year.
Reaction:
Ben Waugh, managing director, more2life:
“Inflation is levelling out, hovering at 2.3%, and rates have settled into a more regular groove as a result.
“This more stable market climate is encouraging borrowers to seize their opportunity to get a foothold on the housing ladder – for aspiring first-time buyers and homeowners weighing up their remortgage options, there is reason for optimism.
“The mortgage market may have turned a corner into calmer waters, but we must be mindful of the horizon.
“As Sir Steve Webb’s research demonstrated, there has been a significant uptick in the number of 35-year mortgage terms, and so many of today’s first-time buyers may be shouldering repayments into their retirement.
“In an evolving market, a conversation with an expert adviser can shed light on a range of tailored later life options, steering borrowers towards a more secure financial future.”
Josh Skelding, commercial director at Fignum:
“With the spring months typically proving busier for the mortgage market, this is reflected in today’s uptick in the number of property transactions.
“However, with an election now on the horizon, it would be fantastic to see policies from our next government that kick the mortgage market up a gear.
“Affordability, both of deposits and monthly mortgage payments, remain a sizeable barrier for those hoping to take their first steps on the property ladder.
“Although schemes like Deposit Unlock have been introduced, none rival the success of the Help to Buy scheme.
“Likewise, Stamp Duty remains a pertinent issue, with many arguing that it puts pressure on housing stock by disincentivizing movers and downsizers.
“Therefore, while both lenders and homebuyers are responding to the stability returning to the mortgage market, more must be done to reinvigorate transaction figures – particularly amongst first-time buyers.”
Kevin Roberts, managing director, Legal and General Mortgage Services:
“A fourth consecutive month-on-month increase in sales is music to our ears, and gives us further confidence that this will be a much brighter year than 2023.
“The discussion around a summer base rate cut is possibly helping to fuel consumer confidence, and the market and many lenders have already priced in a reduction.
“Product availability also remains strong, with over 6,500 products on the market this month, up from 6,300 in April and 5,200 in May last year.
“Affordability does however remain stretched, so it is great to see the availability of 90% loan-to-value (LTV) products rise for a third consecutive month to the highest point in over 16 years.
“With inflation now at its lowest point for two years, there’s plenty of reason to be confident in the outlook for our sector, and I’m looking forward to seeing where this renewed optimism and confidence can take us.”
Nick Leeming, chairman of Jackson-Stops:
“Today’s figures will be a welcome read for many, with April ending the first quarter of the year on a pleasantly high note as we head into summer with a strong pipeline of buyers committed.
“Certainty and stability in these figures help fuel consumer confidence, reflected in the 13% annual uptick of property listings that we’re seeing across our national network of branches, and 49% increase in new instructions in May alone.
“Whilst the starting pistol has been fired on the General Election, lifestyle, schools and finances all remain significant levers for home movers in the immediate term.
“Homeowners, renters, and property agents alike will be paying close attention to what the main parties have to say – and promise – in the coming weeks, and whether tax reforms may be on the cards.
“However, the biggest incentive may come from a future drop in interest rates to open more lending options for would-be buyers.
“Across Jackson-Stops’ own national network in April, valuations and market appraisals are at their highest in since the pandemic, suggesting sellers remain resolute in their decisions to move.
“The market is no stranger to a general election, and positively, has a proven track record of taking external headwinds in its stride.”
