- There were an estimated 98,700 residential property sales in June, seasonally adjusted (source: UK monthly property transactions commentary – GOV.UK)
- That’s up 2% in a year and up just under 1% in a month
- However, wider data from the property market suggests that global uncertainty is impacting on buyers’ confidence
Sarah Coles, head of personal finance at AJ Bell, comments:
“The UK’s commitment to buying property has been sorely tested in recent months, but has withstood the pressure impressively. Property sales rose very slightly in June – putting it around the middle of the pack for a typical June over the last decade. This is notable, because given it takes around 3-4 months to move from an agreed sale to completion, it means at this stage, most of these sales were agreed after the outbreak of the Iran war at the end of February.
“Buyers made it through the whole tortuous process of buying and selling with a backdrop of global uncertainty, stuttering consumer confidence, and growing concerns about jobs. The fact so many of them did it is a testament to the UK’s love affair with the idea of having a home of their own.
“Having said that, we’re not seeing property fly off the shelves. Separate Rightmove data shows homes are hanging around a little longer on the market, and Nationwide data out this morning shows price growth is still sluggish. It means buyers have time to put themselves in a strong position to buy, and protect themselves from the perils of over-stretching.
“The more you can build your deposit, the better. If you have a Lifetime ISA, you can make the most of this year’s allowance and the government bonus, so you don’t have to borrow quite so much when the time comes to buy. It’s also a chance to revisit your emergency savings, and build a bigger cushion of cash to protect you from unexpected costs during the move.
“Those who have a bit longer before they expect to buy could consider investing their money. This could be through a Stocks and Shares ISA or by using a Lifetime ISA and benefitting from the 25% government bonus on top of contributions up to £4,000 per year.”
