Figures for seasonally adjusted residential transactions in June show a marginal month-on-month decrease for the first time since December 2023, falling by less than 1% from 91,880 in May 2024 to 91,370 in June 2024.
Non-seasonally adjusted residential transactions fell by 2% in June 2024 relative to May 2024.
This is according to the latest HMRC UK monthly property transactions data.
Commenting on the figures Saffron for Intermediaries head of business development Tony Hall said that the numbers were not particularly surprising, as borrowers held off purchases while they wait for the long-awaited base rate cut.
“However, no matter what the Bank of England decides to do tomorrow, the mortgage market is on a very positive trajectory. We are already seeing lenders compete on price and a lot of noise from the new government on housing is being matched by a hum of positive sentiment among consumers as they look to take advantage of newfound stability.”
Legal and General Mortgage Services managing director Kevin Roberts commented: “The market remained steady in June and July with buyers largely undeterred by the general election speculation. All eyes are now on the Bank of England’s interest rate decision tomorrow, but the truth is that the market is already enjoying strong competition on rates with many lenders now offering fixes below 4% for the first time since April. Product choice and buyer confidence are both high, feeding into a positive market outlook.”
More2life managing director Ben Waugh echoed the positive sentiment. “A slight lull in property transactions doesn’t mean that the market has lost the momentum that has been building this year. A price war among major mainstream mortgage lenders has resulted in a string of rate reductions and the gradual return of more competitive products.”
He added: “Today’s data is likely a momentary pause before we see a flurry of activity again. With a cut to the Bank of England’s central rate potentially arriving tomorrow, more borrowers might be convinced that the time has come to transact as we move into late summer and beyond.”
SPF Private Clients chief executive Mark Harris insisted: “Subdued transaction numbers are unsurprising considering the upcoming general election and higher mortgage rates, with many buyers and sellers sitting on their hands.
“However, with numerous lenders reducing their fixed-rate mortgages on the back of cheaper swap rates, borrowers are hoping this is a sign of better things to come and should boost transaction numbers in coming months.” He added: “An interest rate reduction in the autumn will further boost buyer confidence and activity.”
