Non-resi transactions climb in May

This month’s figure is 6.4% higher compared with the same month last year.

The HMRC report notes that 'the non-residential property market has mirrored, to a large extent, the ups and downs of the residential market'. The effects of the crisis from 2007 triggered a similar fall in transactions but not to quite the same extent as in the residential market.

The trend in non-residential property transactions has been that of a generally flat seasonal cycle between September 2010 and September 2013, but since then there has been a rising trend. Unlike the residential market, there have been no temporary tax reliefs or 'holidays' in recent years to distort the underlying trend.

Danny Waters, Chief Executive Officer of Enterprise Finance, said:

“Residential transactions in May were the highest we have witnessed so far this year, due in no small part to the buyer logjam being eased once the election outcome became clear. Activity still hasn’t returned to the levels witnessed last summer, but there is every chance we could be in for a repeat as we head towards peak season.

“Non-residential transactions have been relatively modest in the past few months after a strong March, but the annual totals continue to head northwards. This would certainly tally with the renewed demand we are seeing from businesses and developers to acquire and refurbish premises and take on new projects.”