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Housing market experienced a quieter month in November

Property transactions fell by 8% between October and November to 92,640, seasonally adjusted figures from the HMRC show.

They also dropped by 5% compared to November last year.

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said: “A dip in transaction volumes shows that higher borrowing costs and affordability pressures are inevitably impacting buyer activity.

“That said, this month we have been seeing a good number of market appraisals, which is often a precursor to a strong Spring market.

“In areas where stock is limited, markets have remained steady, particularly the family home market with work-from-home potential. Homes that are well priced and well presented are still selling relatively quickly; while buyers may pause to assess financial implications, high-demand areas are likely to retain interest.”

It’s expected that transactions will pick up in the early part of 2025, as buyers look to get deals completed before the lower stamp duty thresholds come into force in April.

Mortgage rates have trended higher since the Autumn Budget, as the financial markets gave the October 30 announcement a mixed reception.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Swap rates have been mostly trending upwards since mid-December as the outlook suggests fewer rate cuts this year than previously thought.

“Despite this, a number of lenders including Halifax, HSBC and Leeds Building Society have made significant reductions to their fixed rates as they attempt to build a pipeline of business for the new year.

“However, other lenders have moved in the opposite direction and have raised some rates, including Skipton, Virgin and Clydesdale, while TSB has increased the pricing of more products than it has reduced, and Accord has increased as many rates as it has cut.

“Lenders who are increasing their pricing may be more sensitive to Swap rate rises than bigger lenders who have more funds in savings to call upon and are better able to absorb any increases in Swaps.”

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