However, the 96,290 residential transactions last month was 16.4% lower than November 2020 on a seasonally adjusted basis
UK residential property transactions increased by 24.3% in November compared to the previous month, the latest statistics from HMRC show.
However, the 96,290 residential transactions last month was 16.4% lower than November 2020 on a seasonally adjusted basis.
Non-residential transactions last month were 10,840, 15.9% higher than November 2020 and 9% higher than October 2021.
The provisional non-seasonally adjusted estimate of UK residential transactions in November 2021 is 104,980, 13.4% lower than November 2020 and 22.7% higher than October 2021.
The provisional non-seasonally adjusted estimate of UK non-residential transactions in November 2021 is 11,340, 21.3% higher than November 2020 and 10.9% higher than October 2021.
Quilter mortgage expert Karen Noye says: The increase in sales may well be halted in the coming months now that the Bank of England has increased interest rates as mortgage rates will subsequently rise. While the BoE had not yet made its decision to increase rates when this data was collected, lenders had already started to raise their mortgage rates as a result of wide speculation of a hike.
Now the Bank has raised rates to 0.25%, prospective buyers may well be put off. Highly inflated house prices coupled with higher mortgage rates as a result of the hike will make buying a home all the more unaffordable, Noye said.
First time buyers, who are already often dealt the highest mortgage rates due to high loan-to-value ratios, will see the property ladder pushed one step further away, she said.
Noye said: While it may make buying a home more difficult in the short term, the interest rate rise could well serve to knock back the massively inflated housing market. As less people are keen to move and demand decreases, house prices may well fall – albeit probably at a slower pace than some may hope.