Search Acumen [1] (property data insight and technology provider) comments on HMRC’s property transaction data for April 2024:
- The seasonally adjusted estimate of UK non-residential (commercial) transactions in April shows a 4% annual increase compared to April 2023, and a 3% monthly increase compared to March 2024. Non-seasonally adjusted this annual figure changes to a 13% increase.
- The seasonally adjusted estimate of UK residential transactions in April shows a 10% annual increase compared to April 2023, and a 5% monthly increase compared to March 2024. Non-seasonally adjusted this annual figure changes to a 17% increase.
Andrew Lloyd, Managing Director at Search Acumen, the property data and insight provider, comments:
“Early signs that both transaction numbers and property prices are stabilising will give residential and commercial pundits fuel for a busy summer ahead, undeterred by the forthcoming election. Many would safely predict an uptick in current residential transaction numbers across May and June as consumer confidence stabilises. Likewise, we could see a more immediate boost to commercial real estate deals if interest rates decline come the next Bank of England decision on June 20th. An overall sentiment of hope is tangible across the industry right now.
“More broadly, macroeconomic volatility and currency risk exposure will be leading drivers in investor activity across commercial real estate markets for the rest of the year. Favourable exchange rates may incentivise global investors to make a move; just as lower interest rate environments and significantly decreased inflation can unlock deals. Currently, we’re in a ten-year low in commercial real estate lending, in which low overall transaction volumes in real estate equity markets, together with valuation uncertainties, points to a risk averse market. Technology and automation represent a small, but ever-increasing advantage when transactions need to move fast against this economic backdrop, and something we’re seeing brokers and lawyers increasingly use to their advantage for clients right across the board.”