Property transactions pick up by 15% in February: HMRC

UK residential transactions totalled 96,250 in February, 20.6% lower than February 2021 but 15.3% higher than January, according to the latest HMRC figures.

Related topics:  Finance News
Rozi Jones
22nd March 2022
House for sale sign sold
"The momentum which began with the release of pent-up demand after lockdown restrictions relaxed shows little signs of abating and may even be on the rise"

On a seasonally adjusted basis, transactions were 20.8% lower than February 2021 and 4.4% higher than January 2022.

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: "Transactions picked up in February as the market ticked up a degree following the traditionally quieter January lull.

"Some heat has come out of the purchase market compared with last year but the remortgaging market is picking up as borrowers attempt to lock into low mortgage rates before they disappear.

"Increasing living costs, rising mortgage rates and higher taxes make for an unwelcome triple whammy which may put the brakes on the housing market unless the Chancellor comes up with a strategy to soften the blow in his Spring Statement."

Jeremy Leaf, north London estate agent and former RICS chairman, said: "Transactions are a very important piece in the property jigsaw when it comes to assessing market health.

"These figures confirm why house prices have continued their inexorable rise, despite economic and other headwinds, not least tragic events in Ukraine. As we are finding in our offices, the momentum which began with the release of pent-up demand after lockdown restrictions relaxed shows little signs of abating and may even be on the rise, thanks to recent welcome additions in stock levels."

Clare Beardmore, head of broker and propositions at Legal & General Mortgage Club, added: “While house prices continue to surge, fuelled by a considerable mismatch between supply and demand, it is unsurprising that the number of transactions is beginning to adjust. The ongoing scarcity of supply has naturally curbed some of last year’s frenetic market activity, however, there are still plenty of buyers that are determined to press ahead with their purchase plans and take advantage of relatively modest interest rates, while they remain low.

“As the market settles into a new rhythm and we head towards another busy spring, the next few months could prove more complicated for borrowers. Household budgets are under significant strain, and the cost of living crisis is primed to deepen in April, with energy costs and national insurance contributions set to mount. Against that backdrop, the value of advice remains paramount. Advisers are well-placed to help prospective borrowers navigate a knock to their finances, and source a deal that is well aligned with their individual circumstances.”

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