Properties are changing hands more than last year, signalling that buyer appetite has stayed at a moderate level despite the upcoming General Election, HMRC data shows.
There were 91,290 residential transactions in May 2024, 17% more than the same month last year, as well as 2% more than in April 2024.
Crispin Harris, director at Jackson-Stops, said: “A confident 2% rise in property deals month-month, following five consecutive monthly rises since January, signals a market rooted in stability with hopes of further growth as we move into summer.
“Whilst pricing remains sensitive, interest rates look compatible with modest capital gains over the coming months. This is reflected in the latest HM Land Registry figures noting a 1.1% annual lift in average house prices in the UK for April.”
He went on to say that Jackson-Stops’ national branch figures have been even more positive in April and May, as new instructions rose by 34% year-on-year. This suggests activity should continue on the upward trajectory for the next few months.
There are also more commercial deals than last year, as HRMC figures show that non-residential transactions were 6% higher than May 2023, as well as 1% higher than April 2024.
Andrew Lloyd, managing director at Search Acumen, the property data provider, said: “The uptick in commercial property transactions for May is a welcome sign of resilience in the real estate sector, demonstrating that the looming General Election has not yet deterred investors against a wider economic picture of stability.
“This positive result after a downward swing in commercial real estate investment in the first quarter of the year could signal a turning point for the industry, potentially ushering in a more dynamic period for both residential and commercial sectors alike.
“Whilst we must rightfully underscore gains in an uncertain market, cautious optimism remains the most sensible takeaway of today’s results. It is positive to see investors focus on the fundamental strengths of prime assets and emerging opportunities in sectors such as technology and life sciences.”