House sales slipped back in November, compared with October, but were higher than the same month a year earlier, according to HM Revenue & Customs figures.

Across the UK, 92,640 property sales were recorded in November 2024, which was 8% lower than the previous month but 13% higher than in November 2023.

The Bank of England recently reported that the number of mortgage approvals made to home buyers dipped in November.

Some 65,700 mortgage approvals for house purchases were recorded in November, which was around 2,400 lower than October but above the previous 12-month average of 60,400.

Halifax also recently reported that house prices dipped by 0.2% month-on-month on average in December, following five months in a row of rises.

Tom Bill, head of UK residential research at Knight Frank, said: ‘This is the third crack that has appeared in the UK housing market since borrowing costs jumped after the budget.

‘We saw a drop in mortgage approvals in November and the latest Halifax house price data showed a monthly drop in December. As higher borrowing costs start to bite harder we would expect more downwards pressure on house prices and transaction activity in 2025.’

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘Swap rates (which lenders use to price loans) 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.’

He added: ‘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.’

Iain McKenzie, chief executive of the Guild of Property Professionals, said: ‘Despite a less-than-ideal start, the housing market proved resilient and finished 2024 strongly. This year the housing market has started in a much stronger position with more choice for buyers and a strong sales pipeline.’

Nick Leeming, chair of Jackson-Stops, said: ‘Across the Jackson-Stops network, we anticipate house prices to stay firm in 2025 whilst some local markets may see price increases of up to 4%. Market activity will be driven by buyers’ pursuit of stability amid economic uncertainty.’

Jason Tebb, president of OnTheMarket, said: ‘The numbers need to be put into context as buyers and sellers brought forward transactions to October amid concerns as to what the Budget might hold, boosting activity that month.

‘Two rate reductions in the second half of last year bolstered buyer and seller confidence, and with further cuts expected this year, there is cautious optimism which bodes well for the spring market.’

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: ‘With more competitive interest rates than this time last year, growing numbers of homes coming to the market, and a rush from many buyers and sellers to beat the rises to stamp duty commencing from April 2025 in England and Northern Ireland, the overall mix of market conditions has inspired many and, in numerous cases, provided the extra confidence and affordability people were waiting for to make their first or next house move.’

By Vicky Shaw, PA Personal Finance Correspondent

Press Association: Finance

source: PA

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