The latest housing figures suggest buyer demand is holding up – but the homebuying process continues to hold the market back.
With transactions taking longer than they should to complete, estate agents are renewing calls for the government and housing secretary Angela Rayner to keep reform of the buying and selling process at the top of the housing agenda.
The latest figures from HM Revenue & Customs (HMRC) show there were 98,700 seasonally adjusted residential property transactions in June, up marginally from 98,460 in May. Activity was also 2% higher than a year earlier, when buyers had rushed to complete purchases ahead of changes to stamp duty thresholds in England and Northern Ireland.
Nick Leeming, chairman of Jackson-Stops, commented: “The latest HMRC figures reflect a housing market that continues to move at a measured pace, but this should not be mistaken for a lack of demand. Our latest research shows continued intent, with 8% of homeowners in England currently planning to move or already doing so. People continue to move for work, family and lifestyle reasons, but decisions are taking longer as households weigh higher borrowing costs and wider economic uncertainty against uncertain moving timelines.
“The result is a more considered market, where transactions continue to progress at a slower, more deliberate pace.
“This is further evidence that reforming the home-buying and selling process must remain a priority for our new Housing Minister and the Government.”
Leeming says his company has seen positive signs, but maintaining momentum will be essential to delivering a process that provides greater certainty for buyers and sellers while supporting a more fluid housing market.
He continued: “While no single reform will transform market activity overnight, improving the speed, transparency and predictability of transactions can help remove unnecessary barriers within the moving process and give more households the confidence to proceed. Our research suggests that greater certainty around transaction timelines could unlock around 260,000 additional owner-occupied homes across England within a year.
“Looking ahead, affordability and the wider economic backdrop will continue to shape activity, but improving certainty within the transaction process is one practical area where meaningful progress can be made. A healthier housing market is not only about encouraging more people to move, but also about making the process more efficient and predictable, giving , predictable and gives buyers and sellers the confidence to see transactions through to completion.”
Nathan Emerson, CEO at Propertymark, agrees that an increase in property transactions is an “encouraging sign” that buyers and sellers continue to have the confidence to move despite ongoing economic and political change.
He said: “Healthy transaction levels are essential, not only for the housing market, but for the wider UK economy, supporting jobs, investment and local communities.
“Looking ahead, however, market confidence will depend on greater policy certainty. Recent discussions around potential reforms to stamp duty and council tax, alongside broader housing policy proposals from the new Prime Minister, have created questions for many consumers. People are understandably reluctant to make major financial commitments if they are unsure how future tax changes could affect the cost of moving.
“Housing thrives on confidence and stability. With interest rates having stayed the same following yesterday’s decision, consumers and lenders now have greater clarity over borrowing costs, allowing households to make informed decisions about their next move. We now need that same level of certainty from government on its long-term housing strategy to help sustain market momentum.”
