Search Acumen (property data insight and technology provider) comments on HMRC’s property transactions data for July 2022:
- Seasonally adjusted estimate of UK residential transactions in July 2022 is 104,470
- This is 3.2% higher than the previous month of June 2022
- And 36.7% higher than a year ago in July 2021
Andy Sommerville, Director at Search Acumen, says:
“The latest figures show signs of a new normal for property transaction volumes for the immediate future. Although the heat of the post-pandemic property rush has burnt out, we are left with a strong residual market as families grow, downsizers relocate, and employment remains buoyant. This formula has ensured the wheels of the market have kept turning at a steady pace throughout July.
“Despite the cost-of-living crisis set to weigh heavily on consumer finances, the fact that property transactions are levelling out to steadier numbers month-on-month may be indicative of greater supply allowing for more potential buyers to enter the market. As homebuyers race to lock-in better mortgage rates while still available, we might also see a slew of properties come to market as sellers look to take advantage before house prices drop too far. An uptick in supply may not translate to fewer transactions, meaning it is entirely possible to see an extended period of strong transactional activity this autumn despite economic headwinds. These competing dynamics may push and pull the market in different directions and offset each other to some degree. Meanwhile, many caseloads remain victim to stifling backlogs and inefficiencies, keeping conveyancers on their toes.
“All of that translates into a turbulent time for the conveyancing market with law firms needing to drive efficiencies to cope with increasingly complex caseloads and protect themselves against the prospect of a slowing market in the coming months, with inflation rates now predicted by some to go as high as 18%.
“It’s never been more important that conveyancers invest in technological solutions. Once integrated, digital first processes dramatically cut transaction times, drive down the cost base and create a better customer experience, all of which will be pressing concerns for law firm leaders as they look to future proof their companies in an uncertain economy.”
