Transactions for UK residential properties in September on a non-seasonally adjusted basis came to 112,370, new government figures show.
This is a 32% fall on an annual basis and no change compared to the number seen in August 2022.
The data also counts 9,940 non-residential transactions for the same period, which is 7% higher annually and 5% more when compared monthly.
And on a provisional seasonally adjusted basis, the government says there were 103,980 residential transactions – 37% more annually, and 9,630 non-residential transactions, 2% more than seen in August 2021.
Hargreaves Lansdown senior personal finance analyst Sarah Coles says: “House sales plummeted by a third in the year to September, but this shuddering drop isn’t what it seems, because September sales were actually well above their pre-pandemic levels.”
“They were just being compared with a huge spike when the stamp duty holiday came to an end. The real house sales horror story will play out in the coming months.”
“Sales completing in September were largely agreed around June, when demand had started to drop back a little, as rising prices persuaded some to rethink. However, while mortgage rates were rising, the average two-year fixed rate was 3.61% (according to Moneyfacts), so for an awful lot of buyers, monthly payments still felt within the realms of affordability.”
“Sales agreed in the coming weeks are likely to look far uglier, as the chaos unleashed by the mini-budget pushed mortgages well out of reach for an awful lot of buyers.”
Also commenting, MPowered Mortgages distribution director Emma Hollingworth says: “It is not surprising to see that property transactions are down compared to last year, following pressure on would-be buyers in the form of interest rate rises, in particular, and with wider market uncertainty also playing a role.”
“This said, demand remains consistent against last month signalling that ‘proceed with caution’ is the overall sentiment amongst homebuyers. With unemployment numbers remaining low, demand remains, particularly amongst those eager to lock in rates before they rise further – and certainly ahead of the next base rate decision.”
Meanwhile, SPF Private Clients chief executive Mark Harris comments: “With the MPC expected to announce a 100 basis points increase in interest rates next month, there is more pain to come in the short term, which will inevitably impact transactions.”
Smartr365 chief executive and founder Conor Murphy adds: “Today’s data reinforces why the property market is famed for its resilience. Despite a busy and complicated period for the mortgage market and economy, activity remains reassuringly consistent. The recent stamp duty tax cuts will also certainly help to spur activity despite economic strains elsewhere.”
