No evidence of economic growth in the sale of commercial or residential properties
Statistics released by HMRC today show no evidence of economic growth in the sale of commercial or residential properties, say leading audit, tax and business advisory firm, Blick Rothenberg.
Heather Powell, a partner at the firm, said: “There is no evidence of any confidence in the market or a hunger for the purchase of the 1.5m homes the government continues to quote as the target for delivery of new homes before August 2029.”
She added: “The statistics report the purchase of 103,330 homes, which is 3% lower than November 2024. This is a reflection of the confidence of individuals and families. While interest rates have dropped slightly, there continue to be major worries about job security and the cost of living.”
Heather said: “Buying your first home, or moving up the housing ladder, is a major expense, and one that many are ‘pushing back’ on the basis of ‘let’s see what the year will bring’. House prices are not increasing significantly; in some areas in the South East, they are falling slightly, which is another incentive to hold back.”
She added: “While the government are relaxing planning legislation, and pushing forward with the development of new towns, the concerns of the house builders about capacity within the sector to actually build the homes and the ability of families to buy the homes built for sale, has to be addressed by the chancellor if significant numbers of new homes are going to be built. No developer is going to build homes that they cannot sell at a profit.”
Heather said: “The statistics on the sale of commercial buildings – properties such as offices, factories, warehouses and logistic centres – are perhaps of even more concern when considering the need for growth in the economy. Sales in November 2025 are reported as 11,240 properties, 1% down on the sales in October 2025 and up by 12% on the sales in November 2024.”
She added: “Commercial properties are the infrastructure of our economy – and property sales occur when investors are confident that the businesses will pay their rents on time, that rents will rise in line with inflation, and that businesses will thrive. An upsurge in sales is an indicator of confidence and a growing economy. These signs are missing at the moment as businesses grapple with increased labour costs, increased overheads and a lack of demand from consumers who are focussing on building up their savings, not spending.”