Residential property sales up 1% in October, but still down year on year

The number of residential property sales in the UK increased by 1% between September and October compared to a 4.3% drop the previous month, the latest official data shows.

However, the figures from HMRC also show that the latest seasonally adjusted figure is 8% lower compared with the same month last year.

Overall for October 2016 the number of non-adjusted residential transactions was about 6.2% lower compared with September 2016 while the number of non-adjusted residential sales was 16.4% lower than in October 2015.

Property experts believe that the figures are a positive sign, showing stability in the market after the decision to leave the European Union in a time of continued uncertainty over how Brexit will affect the British economy.

Stephen Wasserman, managing director of West One Loans, believes that the market is picking up. ‘We anticipate many buyers, buy to let and second home buyers will start to emerge from the woodwork once again,’ he said.

‘If this positive sentiment continues, we expect to see an increase in demand for short term finance, such as bridging loans, as purchasers look to stabilise property chains and snap-up new opportunities as they come to market. However, it’s crucial the industry works to boost the availability of competitive and suitable financing options to support the market’s continued recovery,’ he added.

According to Stephen Smith, director of Legal & General Housing Partnerships, despite the annual fall in sales, the monthly rise is a positive although overall the figures reaffirm the unpredictable nature of the housing market.

‘These figures confirm that the appetite for home ownership remains strong as we draw to the end of 2016,’ he added.