According to the latest data on UK monthly property transactions, residential property transactions in July 2022 increased by 3.2% on the previous month to 104,470 and 36.7% year-on-year higher, highlighting an uptick in residential market activity. Non-residential transactions also rose in July 2022, 7.1% higher than June 2022 and 6.4% higher than July 2021.
Historically, the summer months have shown a peak in residential property transactions, and July 2022 is no exception, despite the cost-of-living crisis and increase to mortgage rates.
Elaine Shiels, partner at RSM, comments: ‘The statistics show that the estimated number of transactions are at a seven-year high, and are remaining slightly elevated above the pre-Covid figures. The shortage of housing will keep the prices high for residential property transactions despite other pinch points house buyers may be feeling due to the cost-of-living crisis. In order to combat this issue, the newly elected Conservative leader should focus on making new build properties affordable and accessible to first-time buyers wanting to get on the ladder.
‘However, for non-residential transactions, the data shows some positive signs of recovery and stability. In the previous three months up to July 2022, non-residential transactions in the UK have stabilised and are relatively low compared to pre-Covid levels, most likely impacted by the cultural shift to hybrid working, reducing the demand for non-residential property.’