The UK property market has reached a significant milestone, with the number of monthly property transactions surpassing 100,000 in August 2024. This marks the first time since December 2022 that the threshold has been exceeded, highlighting renewed market confidence following the Bank of England’s decision to hold the base rate at 5.25%.
Market stabilises as rates hold steady
GetAgent.co.uk, a property comparison site, has analysed the latest government data, revealing that the market’s positivity is now translating into higher transaction volumes. From December 2021 to August 2023, during a period of steadily rising interest rates, the UK saw an average of 99,510 monthly transactions, growing at a rate of 2.2% per month. However, once the Bank of England paused rate increases in September 2023, transaction volumes began to decline, dropping to an average of 87,940 per month and shrinking by -2.2%.
Positive signs in August
The tide turned in August 2024, following the first base rate reduction in four years at the beginning of the month. Transactions increased by 7.6% compared to July, bringing the total to 104,330. This marks the first time in nearly two years that monthly sales exceeded 100,000, signalling a broader recovery in the property market.
Colby Short, co-founder and CEO of GetAgent, explained: “We’ve seen a high level of property market positivity so far this year, and there’s no doubt that a hold on interest rates has helped to bring a greater degree of confidence to the market, with buyer activity in the way of mortgage approval levels increasing consistently in recent months.”
Gradual recovery expected
While the recent uptick is a positive sign, Short points out that the full impact is only now being felt due to the time it takes for sales to complete. He added: “It’s only now that we’re seeing this filter through to an increase in transactional volumes, with total UK transactions exceeding the 100,000 threshold for the first time in almost two years. However, while the outlook for the year is good, we’re unlikely to see the market return to full strength until next year where transaction levels are concerned.”
As confidence grows in the UK property market, particularly with stabilising mortgage rates and a more favourable lending environment, buyers and sellers are returning to the market. With August’s transaction figures hitting a new high for 2024, the stage is set for further recovery, though the real momentum may not be fully realised until 2025.
