Strong uptick in housing transactions highlights investor caution pre-budget

Residential property transactions in October 2024 stood at in 100,410, 21% higher than October 2023 and 10% higher than September 2024. For the same period, non-residential property transactions reached 14,150, 42% higher than October 2023 and 40% higher than September 2024.

Between April and October 2024, non-residential transactions totalled 74,410, the highest level in the last ten years.

Commenting on the latest government figures for monthly property transactions, Stacy Eden, Partner and Head of Real Estate at RSM UK, said: “The strong uptick in property transactions could be seen as encouraging, particularly for commercial transactions in October, which were 40% above the sector’s average for the last ten years. The uplift in residential property transactions also reinforces that market confidence may be returning amidst government’s focus on housebuilding and home ownership to drive economic growth.

“But, the rise in commercial property transactions was potentially driven by concerns of capital gains tax (CGT) increasing in the budget. Whilst the outcome of CGT changes was not as penal as some investors thought, clearly concerns had an effect in the run up to the Chancellor’s fiscal announcement. It will be interesting to see the impact of this uptick in November, which will provide more clarity on the overall health of the sector, with levels of residential and commercial transactions likely to remain stable.

“However, to ensure long-term growth in real estate and the UK economy, government must accelerate planning reform alongside further investment outlined in last month’s Autumn Budget.”