The number of UK residential transactions have increased for the second consecutive month over February, data from HM Revenue and Customs has revealed.
The data, UK monthly property transactions, found the number of seasonally adjusted residential transactions in February rose to 82,940.
This represented an increase of 1 per cent on the 81,930 transactions recorded in January, but was 6 per cent lower than the same month in 2023.
Savills director of research, Frances McDonald, said: “Buyers are heading back to market, thanks to an improved outlook which has boosted confidence.”
However, she warned this data lags more recent housing market indicators.
“More up to date figures from TwentyCi show that greater confidence in the mortgage markets has fed into higher levels of activity so far this year,” she explained.
“Agreed sales net of fall throughs in Q1 were 20 per cent up compared to 2023 and remain 7 per cent higher than pre-pandemic levels.”
McDonald added this showed early signs that buyers’ budgets are beginning to rise, especially those looking to upsize and take on more mortgage finance.
Meanwhile, the number of non-seasonally adjusted residential transactions also saw a monthly increase, rising by 9 per cent from January to February.
However, the 73,360 transactions recorded in February 2024 represented a 3 per cent fall when compared with February 2023.
Non-residential transactions
Additionally, HMRC found that the provisional seasonally adjusted estimate of the number of UK non-residential transactions reached 10,050 in February 2024.
This represented a 6 per cent increase on a monthly basis and a 4 per cent increase on a yearly basis.
A similar trend was observed among non-seasonally adjusted non-residential transactions, which increased to 9,060 last month.
This also represented an increase on both a monthly and yearly basis, rising by 8 per cent for both.
Antony Roberts head of sales, Amy Reynolds, said: “On the ground, the sales market continues to gather momentum.”
Roberts also advised that, as the housing market tends to slow down during an election year, now is an “ideal time” for vendors to capitalise on heightened demand before the prime minister announces the date.
This could potentially result in faster sales and more favourable prices.
“Overall market strength and stability is being underscored by better mortgage rates and an ongoing supply/demand imbalance,” she added.
tom.dunstan@ft.com
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