Brits untroubled by rising mortgage rates as property transactions rise
Monthly property transactions have increased across the UK and returned to pre-pandemic levels despite the ongoing cost of living crisis.
Today, HM Revenue and Customs (HMRC) published statistics indicating that monthly property transactions in the UK above £40,000 have increased consecutively over the past nine months.
Frances McDonald, research analyst at Savills said: “In light of the economic backdrop, transaction figures coming out of the HMRC remain surprisingly strong.”
In November, the provisional seasonally adjusted number of transactions hit 107,1790, a 13 per cent increase over the same time last year and a 1 per cent higher than in the previous month.
Since property transaction data started to be recorded in 2005, November numbers are significantly above the average 98.2 transaction average.
However, McDonald warns that indicators from the RICS, Bank of England and mains listing agencies “suggest a somewhat lower turnover market next year”.
Limited mortgage product availability coupled with high rates and stretched affordability will hamper the number of transactions over £40,000 McDonald suggests.
In the capital, Londoners are expected to pay nearly 40 per cent of their wages on rent each month. Elsewhere in England, private renters could spend 26 per cent of their income on homes.
Across the country, the average rent price has risen by 10.8 per cent compared to December last year, increasing from £1,060 per month at the end of 2021 to £1,175.
To ease the pressure on the most vulnerable renters, six of the country’s largest banks have started to consider mortgage applications for flats with dangerous cladding.