Property transactions dropped for third month in November

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The data shows that residential transactions totalled 87,640 in November 2023; 22% lower than November 2022 and 2% lower than October 2023

UK residential transactions dropped for the third successive month in November, according to the latest figures from HMRC.

The data shows that residential transactions totalled 87,640 in November 2023; 22% lower than November 2022 and 2% lower than October 2023.

On a seasonally adjusted basis, residential transactions were also 22% lower than November 2022 and 1% lower than in October.

Nathan Emerson, CEO of Propertymark, said: 2023 has not been without challenges for the housing market, with price fluctuations being a strong indicator of broader economic health. We have seen a brutal mix of high inflation and higher interest rates knock consumer confidence across the year.

Propertymark are positive the peak of the turmoil is now hopefully behind us; nevertheless, we must tread with caution over the coming months. We are currently seeing pockets of house price growth, which is reassuring, but to be fully confident this must be universally seen across the entire UK, he said.

Matt Thompson, head of sales at Chestertons, said: Our offices registered 34% more buyers making an offer in November compared to the same month last year. A lot of this is led by pent-up demand and house hunters feeling more confident after the announcement of interest rates remaining at 5.25% for the time being.

Thompson said: We forecast for UK house prices to experience a slight drop of -0.3% over 2024, while London prices will show growth of 1.8% because of the higher number of cash buyers that are less impacted by interest rates. The prospect of a marginally stronger economic outlook from 2025 feeds through to a more meaningful rise in house prices. We predict that this will result in growth of between 3.5% and 4.5% across London and the UK. Nevertheless, we caution that any house price growth is more likely to be slow and steady rather than spectacular.

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