Yes it’s winter but residential property is not facing a perfect storm
The number of residential property transactions in November was 12% higher than that of the same month last year, according to the latest figures from HMRC. On a non-seasonally adjusted basis, there were 114,200 transactions in November 2022, which also represents a rise of 4% on October, writes Clive Scrivener, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Mortgage Finance Gazette reported HMRC’s findings that the impact of recent increases in mortgage rates have not yet had an observed impact on statistics, likely because transactions data is based upon date of completion, which is later in the property purchase process.
It seems to surprise the gloom mongers that despite many wider economic challenges, consumers still want to buy property and move up the housing ladder.
In spite of the notorious mini-budget the pipeline of transactions continued to increase in the months leading up to the chaos. And whilst we all adjust to a more expensive debt market, and likely long term interest rates in the 3 – 5% region the effect of the current economic downturn will be to bring inflation down – something the US seems to be experiencing already.
Lloyd Davies, Chairman of the Conveyancing Foundation charity, has forecast “a slow start to 2023” for residential property sales. We disagree. And we disagree certainly for the Prime Central London, Wimbledon and Merton markets in particular.
Reported here by Property Industry Eye, he said: “Interest rate rises again this month show the Bank of England have little regard or compassion or understanding of the current state of the UK or world economy.”
What we do agree with him on, is: “Transaction numbers and the gloominess will lift towards the summer as interest rates and lending stabilise and the Government look to lift the economy again before the General Election in May 2024.”
Yes it’s winter, but residential property is not facing a perfect storm.
If you would like to discuss something related to a property valuation please contact Clive Scrivener direct via email at Clive@scrivenertibbatts.co.uk or call 020 8971 2983.
Yes it’s winter but residential property is not facing a perfect storm
The number of residential property transactions in November was 12% higher than that of the same month last year, according to the latest figures from HMRC. On a non-seasonally adjusted basis, there were 114,200 transactions in November 2022, which also represents a rise of 4% on October, writes Clive Scrivener, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Mortgage Finance Gazette reported HMRC’s findings that the impact of recent increases in mortgage rates have not yet had an observed impact on statistics, likely because transactions data is based upon date of completion, which is later in the property purchase process.
It seems to surprise the gloom mongers that despite many wider economic challenges, consumers still want to buy property and move up the housing ladder.
In spite of the notorious mini-budget the pipeline of transactions continued to increase in the months leading up to the chaos. And whilst we all adjust to a more expensive debt market, and likely long term interest rates in the 3 – 5% region the effect of the current economic downturn will be to bring inflation down – something the US seems to be experiencing already.
Lloyd Davies, Chairman of the Conveyancing Foundation charity, has forecast “a slow start to 2023” for residential property sales. We disagree. And we disagree certainly for the Prime Central London, Wimbledon and Merton markets in particular.
Reported here by Property Industry Eye, he said: “Interest rate rises again this month show the Bank of England have little regard or compassion or understanding of the current state of the UK or world economy.”
What we do agree with him on, is: “Transaction numbers and the gloominess will lift towards the summer as interest rates and lending stabilise and the Government look to lift the economy again before the General Election in May 2024.”
Yes it’s winter, but residential property is not facing a perfect storm. Happy 2023!
If you would like to discuss something related to a property valuation please contact Clive Scrivener direct via email at Clive@scrivenertibbatts.co.uk or call 020 8971 2983.
