HMRC’s provisional non-seasonally adjusted estimate of UK residential transactions in February 2022 is 96,250. This is 20.6% lower than February 2021 and 15.3% higher than January 2022.
Meanwhile, its estimate of UK non-residential transactions is 9,860, 10.2% higher than February 2021 and 17.4% higher than January 2022.
Clare Beardmore, head of broker and propositions, Legal & General Mortgage Club, said: “While house prices continue to surge, fuelled by a considerable mismatch between supply and demand, it is unsurprising that the number of transactions is beginning to adjust.
“The ongoing scarcity of supply has naturally curbed some of last year’s frenetic market activity, however, there are still plenty of buyers that are determined to press ahead with their purchase plans and take advantage of relatively modest interest rates, while they remain low.
“As the market settles into a new rhythm and we head towards another busy spring, the next few months could prove more complicated for borrowers. Household budgets are under significant strain, and the cost of living crisis is primed to deepen in April, with energy costs and national insurance contributions set to mount. Against that backdrop, the value of advice remains paramount. Advisers are well-placed to help prospective borrowers navigate a knock to their finances, and source a deal that is well aligned with their individual circumstances.”
Stuart Wilson, corporate marketing director, more2life, added: “February saw the currently booming mortgage market keep going from strength to strength as house prices continued to rise. The later life lending market mirrored this activity as older homeowners look to capitalise on record property prices to unlock their housing equity and boost their retirement income in the face of increasing inflation and rising living costs.
“Indeed, recent data from the Equity Release Council shows that new customers accounted for 90% of equity release lending through 2021, which itself was a record year, and a trend which seems likely to continue as the UK faces difficult economic conditions.
“Whether it’s to manage rising energy bills, support family with house-buying aspirations or improve their financial security, retirees should explore the option of using the equity in their homes to their advantage.”