UNITED KINGDOM (Commonwealth Union)_According to the most recent data, residential real estate transactions in the United Kingdom fell significantly last month, but there is still cause for hope.
Transactions totalling 103,930 decreased 37% year over year in September, according to HMRC. However, a substantial part of this might be attributed to buyers scrambling to close deals the previous year before the stamp duty holiday’s final phase ended on September 30, 2021. Activity for this year was 3.9% greater as compared to 2019, when market conditions were more typical and 99,570 deals were executed.
We might have anticipated today’s results to show a sharper slowdown in sales given that September was rocked by political unrest and a period of national mourning for the Queen, according to Iain McKenzie, CEO of the Guild of Property Professionals.
“Year-over-year sales may indicate that the market is slowing, but it’s vital to interpret these data cautiously. At the end of September 2021, the stamp duty holiday was coming to an end, sparking a wild dash to jump on the property ladder,” he said. “Estate agents across the UK continue to report high demand for limited stock, despite the fact that stocks are beginning to rise.”
The chairman of Jackson-Stops, Nick Leeming, said: “The housing market is stable. After experiencing such an active market since the summer of 2020, transaction levels have remained stable month over month even as the backlog of transactions and completions continues to grow.”
It’s crucial to remember that the levels of activity observed in late 2020 and into 2021 were the exception, not the rule. Annual comparisons will, of course, present a different image. A steady influx of determined buyers and sellers who, for the most part, are not deterred by broader financial uncertainty in the case of home purchases is also continuing to support house prices.
The market continues to believe that a precipitous drop off will be improbable, despite the fact that the fierce levels of buyer competition may not be as common as the peaks we saw at the beginning of the year. While properties at the top and middle of the market continue to perform well across the national Jackson-Stops network, particularly in Chichester, Newmarket, Northampton, and Woking, many areas of the country continue to be supported by unmet buyer demand.
The current economic climate might make closing a deal seem like a thankless and difficult endeavour, but in order to ensure a speedy closing, buyers and sellers must remain steadfast in their dedication to the deal.
