Search Acumen comments on HMRC’s property transaction data for July 2024

Andrew Lloyd , Managing Director at Search Acumen, says:

“The increase in commercial property transactions, marks a positive step forward and suggests that the non-residential market may once again be finding its footing after a challenging period.

“In the residential arena, the year-on-year increase in transactions aligns with our measured expectations of a gradual recovery. As we move into a traditionally slower autumn period, it’s encouraging to see this resilience starting to build. The recent fall in interest rates has undoubtedly played a role, potentially enticing more buyers off the side lines. However, we must remain pragmatic – affordability challenges persist, and the full impact of rate cuts will take time to filter through to mortgage products and buyer confidence.

“The commercial sector’s performance shows promising signs of stability. We’re seeing a dichotomy in the market, with sectors like technology and logistics – particularly data centres and warehousing – driving growth and offsetting the challenges in demand for traditional office space. The reduced cost of borrowing following the base rate cut could be a significant catalyst for larger commercial ventures that have been in holding patterns to date. The green shoots we’re witnessing require nurturing through increased efficiency and reduced friction in transactions. Embracing data-driven decision-making will be crucial in maintaining this positive momentum and ensuring the market can react nimbly to changing economic conditions.”