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UK Property transactions witness varied trends in February 2024, HMRC reports


UK Property transactions witness varied trends in February 2024, HMRC reports

In the latest release from HM Revenue and Customs (HMRC) on the 28th of March 2024, the provisional statistics for UK property transactions in February 2024 have been unveiled, shedding light on the evolving dynamics of the UK's property market. These figures, which serve as a pivotal resource for the surveying industry, indicate nuanced shifts in both residential and non-residential sectors.


Residential Sector Experiences Slight Downturn Year-on-Year but Improves Monthly

The provisional seasonally adjusted estimate reveals a total of 82,940 residential transactions in February 2024, marking a 6% decrease compared to February 2023 but showing a slight improvement of 1% from January 2024. This subtle month-on-month rise indicates a continued interest in residential properties, despite the year-on-year decline.

Similarly, the non-seasonally adjusted figures paint a picture of recovery, with February 2024 witnessing 73,360 transactions, a 9% increase from January 2024, although still 3% lower than the same period last year.


Non-Residential Sector Shows Robust Growth

In contrast to the residential market, the non-residential sector has demonstrated notable resilience and growth. The seasonally adjusted estimate for non-residential transactions stood at 10,050 in February 2024, up by 4% from February 2023 and 6% higher than the preceding month. Non-seasonally adjusted estimates corroborate this trend, recording 9,060 transactions, an 8% increase both year-on-year and month-on-month.


Analytical Insights and Trends

These statistics, derived from records for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT), and Land Transaction Tax (LTT), offer a comprehensive overview of the property market's current state. Notably, the data suggests a gradual stabilisation in the residential market with potential signs of recovery, as indicated by the month-on-month increases.

The non-residential sector's robust performance underscores a growing confidence among investors and businesses, possibly fuelled by the sector's adaptive strategies and the broader economic recovery post-pandemic.


Caution and Future Expectations

It is important to approach these provisional figures with caution due to their preliminary nature and the expectation of revisions in the coming months. These statistics do not necessarily reflect the immediate state of the market but are indicative of transactions completed, which typically occur two to four months following an initial offer.


Looking forward, the industry awaits the next release, scheduled for 09:30 am on the 30th of April 2024, with anticipation for more comprehensive data that will offer further insights into the market's direction.


In conclusion, the February 2024 property transaction statistics from HMRC highlight a complex landscape for the UK property market, with contrasting trends between the residential and non-residential sectors. While the residential market seeks equilibrium, the non-residential sector's growth signals a potentially optimistic outlook for the UK's broader economic recovery and investment climate.


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