[1]Search Acumen [2] (property data insight and technology provider) comments on HMRC’s property transactions data for March 2023 [3]:
- The seasonally adjusted estimate of UK residential transactions in March 2023 shows a 1% increase compared to February 2023 – non-seasonally adjusted this figure changes to a 26% increase compared to the previous month.
- The seasonally adjusted estimate of UK non-residential transactions in March 2023 shows a 6% increase compared to February 2023 – non-seasonally adjusted this figure changes to a 12% increase compared to the previous month.
Andy Sommerville, Director at Search Acumen, the property data and insight provider, comments:
“The turmoil in the residential mortgage market may be coming to end, with a 1% increase month-on-month in today’s property transaction figures. Broadly, a steadying of transaction volumes will likely be a continuing theme for the next few months, with a pale imitation of the usual spring bounce creating a drag on normally higher volumes for this time of year, in which transactions have not been this low since October 2021. We may still see abnormalities further down the tracks with the end of Help to Buy, a new tax year and a potential further interest rate rise likely to dampen the mood.
“Although commercial property activity shows a positive incline, overall, the market continues to reflect a prolonged sentiment of caution, falling short of the transaction peaks seen before the financial crisis in 2008. All firms will be willing on the strongest growth sectors, from life sciences to office space, in the hope of breaching the magic 12,000 monthly transactions by the summer.
“Shifting dynamics in the property market are increasing the squeeze on property lawyers to compete in a slowing sector environment. Protracted timescales and higher risks are threatening the success of deals and mean any time saving and legal efficiencies are no longer just a nice-to-have, but a can’t-live-without. Using data and AI tools to improve accuracy and efficiency for a pressurised workforce, from lawyers right through to planning officers, is key to building longer-term resilience.”