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

Andrew Lloyd , Managing Director at Search Acumen, says:

“The latest HMRC transaction data for June paints a mixed picture for both the residential and commercial property markets. With seasonally adjusted residential transactions increasing by 8% year-on-year but decreasing only slightly by less than 1% month-on-month, we’re seeing some signs of renewed confidence among homebuyers since last year. However, this uptick is not a steady one and suggests that while the market has regained some momentum after a period of uncertainty, it is not by any stretch, out of trouble.

“The commercial property sector has not performed as favourably, with seasonally adjusted transactions the lowest they have been since June 2020 and are lower than levels nearly 10 years ago in June 2015. This is despite property values increasing for the second consecutive month in June, according to CBRE, suggesting a market short of supply and investment opportunities. The sector has been struggling to recover since the pandemic hit and has been burdened by a lack of investor confidence, particularly regarding interest rates and inflation.

“However, while these numbers are not encouraging for the commercial real estate market, they represent just one month’s data. Renewed certainty from the election alongside the upcoming Bank of England decision tomorrow will be a pivotal moment for the market, where if interest rates do come down we may see a very different third quarter to the year especially for commercial transactions which are typically more sensitive to fluctuating debt.

“Businesses will need to remain agile, leveraging data-driven insights and technology to navigate what remains a complex market landscape. At Search Acumen, we’re seeing increasing adoption of proptech solutions among property professionals, enabling faster, more informed decision-making in a bid to be one step ahead of our evolving market.”