Residential property transactions in December fall for a fourth month in a row, 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 between April – December 2023 sat at 749,000, a 20% fall on last year. In December, transactions were 80,000, significantly below the normal level of 100,000. This highlights the ongoing and medium-term slowdown in the residential market and demonstrates that the housing market has to continue to slow due to the economy and interest rates. The four-monthly fall in transactions is driven partly by mortgage-backed purchases, leaving first time buyers trapped by high rent costs and unable to get on the housing ladder. But, given the fall in mortgage rates recently, the recent downward trend seems to have stabilised with transactions only 1% lower than November 2023.’ 

He added: ‘Whilst residential transactions in December 2023 are 18% less than last December, commercial transactions are 3% higher than last December and 3% higher than November 2023. As interest rates stabilise and decrease further in 2024 alongside falling inflation, there is some optimism for the sector with recovery in prices and transactions possibly occurring now in the commercial sector, with improvements in the residential sector expected to follow over the next few months. The government could of course provide a much-needed boost to the market by reducing SDLT in the upcoming spring budget.’