Property transactions continue upward trend but challenges remain, says RSM UK

Commenting on the latest government figures for monthly property transactions, Stacy Eden, partner and head of real estate at RSM UK, said: 'Residential property transactions for May 2024 sat at 91,000, 2% higher than in April and 17% higher than in May 2023. However, numbers are significantly below the pre-pandemic level of 100,000 per month. Whilst it is clearly good news that the market has stabilised and turned the corner following the significant rise in interest rates in 2022 and 2023, transactions are still below historical levels, highlighting that market challenges remain. Following next week’s general election, the next government needs to prioritise housebuilding, by reforming the UK’s planning system and reducing SDLT – both of which hinder transactions. There needs to be enough liquidity and development in the market, to allow first time buyers to get on the housing ladder, particularly with high rental costs in the UK, and house prices currently holding steady.'

He added: 'With non-residential transactions also higher than 2023 but lower than historical levels, this reinforces the impact of high interest rates and financing challenges on the commercial real estate sector. Looking at the bigger picture, although residential and non-residential transactions are at a level that is significantly lower than in pre-pandemic years, the fact that transactions are up on 2023, plus with interest rates due to fall in August, there is good news on the horizon.'