Posts with tag: property sales

Property Market Recorded Unseasonal Dip in April

Published On: May 9, 2017 at 8:12 am

Tags: general election,properties for sale,property market,property sales

The UK property market recorded an unseasonal dip in April, according to the latest Property Activity Index from Agency Express.

Across the country, the number of properties sold dropped, by 15.1% over the month, as did new listings for sale, by 11.5%.

Property Market Recorded Unseasonal Dip in April

Over a three-month rolling period, the index’s data shows more stability across the property market, with new listings up by 5.4% and the number of properties sold up by 7%.

However, looking back at historical records, we can see that figures for April are down when compared to those recorded last year.

Regionally, all of the 12 regions recorded in the Property Activity Index reported decreases in the number of properties sold and those for sale.

The best performing regions for the month of April were:

New listings for sale

Wales: -4.6%
North East: -5.4%
South East: -7.5%
North West: -9.2%

Properties sold

Scotland: -7.4%
Central England: -10.5%
Wales: -11.4%
East Anglia: -12.7%

The greatest decrease recorded in April was in London. The number of properties sold dropped for the first time since December, by 22.4%. The North West followed suit, with a 21.4% decline in the amount of properties sold.

The Managing Director of Agency Express, Stephen Watson, comments: “This month, we have witnessed an unseasonal decline in figures, which may be as a result of the two bank holiday weekends and reduced number of working days. However, if we look at the Property Activity Index’s rolling three-monthly figures, we can see that all 12 regions reported increases in both for sale and sold properties, so essentially the market remains steady.

“Moving forwards into May, we generally see a slower pace across the market, then a pick up again in June, but, as we head towards another General Election, it will be interesting to see how the usual figures fair in comparison.”

Stamp Duty Receipts Down in Q1 Compared to Last Year

Published On: May 2, 2017 at 8:39 am

Author: Em Morley

Categories: Finance News

Tags: property sales,property transactions,Stamp Duty

Stamp Duty receipts recorded by HM Revenue & Customs (HMRC) in the first quarter (Q1) of 2017 are down on last year, due to 2016’s rush to beat the additional Stamp Duty rates.

The provisional non-seasonally adjusted residential property sales count for Q1 2017 is 195,000 liable and 48,900 non-liable transactions.

The number of liable property transactions in Q1 was 5% lower than Q1 2016, while the amount recorded for the financial year 2016-17 was 1% higher than in 2015-16.

The amount of liable transactions with transaction values under £250,000 in Q1 2017 is similar to Q1 2016. For the financial year 2016-17, the number of transactions is 4% higher than in 2015-16.

Stamp Duty Receipts Down in Q1 Compared to Last Year

The number of liable transactions with a value between £250,000-£500,000 in Q1 was 10% lower than in Q1 2016. For the financial year 2016-17, the amount of transactions was 2% lower than in 2015-16.

The number of liable transactions with a value over £500,000 in Q1 was 14% lower than in the same quarter last year. On a financial yearly basis, the amount of transactions was 3% lower than in 2015-16.

Liable transactions in Q1 2016 were unusually high, due to many buyers rushing to purchase properties ahead of the introduction of the 3% Stamp Duty surcharge on additional properties in April 2016. As a result, year-on-year comparisons for this quarter should be made with caution.

The number of non-liable transactions in Q1 was 39% lower than in Q1 2016. For the latest financial year, the amount of non-liable transactions was 31% lower than in 2015-16. The most common reason for residential property sales to not be liable for Stamp Duty is that they fall below the £125,000 threshold.

The estimated Stamp Duty receipts for Q1 2017 is £1,995m from residential transactions and £789m for non-residential transactions. The estimate for residential transactions is 16% higher than Q1 2016. For the financial year 2016-17, the estimated receipts are 17% higher than in 2015-16.

The residential transactions receipts since Q2 2016 include those from sales paying the higher rate of Stamp Duty on additional properties.

For 2016-17, there have been 207,700 transactions of additional properties – either second homes or buy-to-let investments – accounting for a total of £3,242m in Stamp Duty receipts, of which £1,643m is attributed to the additional 3% element.

The Director of Private Finance, Shaun Church, comments on the data: “It is entirely unsurprising to see fewer residential property transactions liable for Stamp Duty in the first quarter of 2017 compared to a year earlier. The introduction of the surcharge on second properties in April 2016 was pre-empted by a huge spike in transactions, as investors sought to beat the deadline and avoid four or five-figure tax penalties. In comparison, transaction levels were always going to look more modest in Q1 2017.

“However, the statistics make it clear that the upper-end of the market has unfairly borne the brunt of land tax reform. While the number of liable transactions with a value of less than £250,000 is practically unchanged from a year ago, there has been a 14% fall in transactions with a value above £500,000. A healthy property market needs movement and fluidity at all levels and across all tenures, but it appears that the changes have unfairly targeted the upper-end of the market, which does little to help the cause of first time buyers.

He continues: “While this high-end slowdown is bad news for the health of the housing market, there is a silver lining for would-be buyers and investors. The slower growth of high-value property prices has had a positive impact on affordability in this segment of the market. According to our research, while last year’s Stamp Duty changes have left landlords and second homebuyers in the top 5% of the market paying £33,639 extra tax, the resulting slower growth in house prices has actually saved them £40,827.”

How has the Stamp Duty surcharge affected you?

Supply of Homes for Sale at Lowest Level since Records Began

Published On: April 27, 2017 at 9:47 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homebuyers,homes for sale,property demand,property market,property sales

The supply of homes for sale in March was at the lowest level for the month since records began, shows the March Housing Report from NAEA Propertymark.

Supply of homes for sale

The number of homes for sale on estate agents’ books dropped to an average of 39 in March, from 44 in February.

This is the lowest figure recorded for March since records began 16 years ago, in September 2002.

Supply of Homes for Sale at Lowest Level since Records Began

Annually, the supply of homes for sale dropped by 28%, as agents had an average of 54 properties on their books last March.

Demand for properties

The number of homebuyers registered per NAEA member branch dropped in March as well. Estate agents had an average of 397 prospective buyers on their books last month, compared with 425 in February.

In March last year, there were 417 prospective buyers registered per branch, marking a 5% year-on-year decrease.

Sales to first time buyers

The proportion of sales agreed to first time buyers increased to 25% in March, up from 22% in February.

The total number of sales to first time buyers dropped significantly from 30% in January to 22% in February, so this increase is a step in the right direction, notes NAEA Propertymark.

Sales agreed

The average number of sales agreed dropped in March, to ten per branch. In February, 11 sales were agreed per branch – the highest number recorded since September 2007.

In March, one in every 20 (5%) properties sold achieved more than the original asking price. This figure has continued to rise since the low of 12% recorded in November 2016.

Stamp Duty reforms

A year on since the higher rates of Stamp Duty for additional properties were introduced, two thirds (64%) of estate agents have seen demand from buy-to-let investors drop.

Just under two fifths (37%) of agents have seen house prices rise as a direct result of the Stamp Duty reforms.

The Chief Executive of NAEA Propertymark, Mark Hayward, comments: “There are currently ten house-hunters chasing each available property, and with supply at the lowest level for March since records began, building more homes to satisfy demand needs to be a priority.

“In line with this, while sales to first time buyers rose slightly in March, they’re still much lower than the levels seen in the last three months of 2016, which is cause for concern. The upcoming General Election is a good opportunity for each party to outline their plans for tackling the housing crisis – we hope to see it prioritised so we can make the market a better place once and for all.”

London Property Sales at Lowest Ever Pre-Election Level

Published On: April 27, 2017 at 8:25 am

Author: Em Morley

Categories: Property News

Tags: general election,London,property market,property sales

London property sales are at the lowest ever levels recorded pre-election, according to analysis of the latest Land Registry data by Portico London estate agent.

London Property Sales at Lowest Ever Pre-Election Level

The data shows that there were just 55 property sales in the whole of the Westminster borough in February this year – the lowest ever number recorded by Land Registry, and 60% lower than in February 2009, immediately after the market crash.

Portico’s study shows that there is a clear correlation between general elections and property sales; hence, the agent is predicting a further decline in sales volumes until the snap General Election on Thursday 8^th June.

Historically, low levels of property sales in central London have pushed people further out of the capital, but Portico’s data shows that falling volumes are now a problem across the whole of London.

There were just 105 property sales in the south London Borough of Wandsworth this February, compared with 370 last year – a huge 72% decline year-on-year.

Likewise, the Land Registry figures show that there were just 82 property sales in the east London Borough of Redbridge in February, compared with 260 the year before – a 68% decrease on an annual basis.

According to Portico’s research, the market will likely experience a spike of activity post-election, when certainty in the market is restored. After the last general election in 2015, Wandsworth and Westminster experienced a 28% increase in property sales in the three months post-election, and Redbridge saw an even greater 34% jump in activity.

The Managing Director of Portico, Robert Nichols, comments: “Currently, transaction volumes, or the number of homes being bought and sold in the capital, are at an all-time low. The drop in transactions is in part explained by a big jump in sales in the run-up to April last year, when the change to Stamp Duty taxes came into effect, followed by an immediate fall. Since then, volumes have dropped to historic lows, and Theresa May’s decision for a snap General Election will further subdue the market.

“We are expecting to see some improvement in volume post-election, but, at best, we expect volume to track at -5% year-on-year to summer 2016, when volumes failed to recover after the Stamp Duty changes.”

However, he adds: “We cannot say for certain what impact a boost in market activity will have on property prices, but, historically, there has always been a slight increase. If we look at the last election, house prices rose by 2.4% in Wandsworth in the three months following the vote, 4.6% in Redbridge and 1.7% in Westminster. Similarly, in the election before that in 2010, property prices rose by 1.8% in Wandsworth, 2.5% in Redbridge and a staggering 19% in Westminster in the three months after the election.”

Annual Property Sales Crash by 40% due to Stamp Duty Hike

Published On: April 25, 2017 at 8:12 am

Author: Em Morley

Categories: Property News

Tags: house sales,property market,property sales,Stamp Duty

Annual Property Sales Crash by 40% due to Stamp Duty Hike

The number of UK residential property sales in March 2017 crashed by 40% on an annual basis, due to last year’s Stamp Duty hike.

HM Revenue & Customs (HMRC) data for March this year showed that 102,740 property sales were completed during the month, compared with 173,860 in March last year.

Figures for March 2016 were skewed, however, by a rush of second homebuyers and buy-to-let landlords to complete purchases ahead of the increase in Stamp Duty. Additional homes are now charged an extra 3% in Stamp Duty upon completion.

Nonetheless, this year’s figure for March was still up by 20% on a monthly basis, and 12% higher than in March two years ago, when there were 91,490 property transactions.

On a seasonally adjusted basis, there were 102,810 property sales in March this year, also around 40% lower than 12 months ago, as these figures typically fall in line with the non-seasonally adjusted number at this time of year.

Matt Robinson, of online estate agent Nested, comments on the property sales statistics: “These figures show a property market that remains stubbornly flat. Now that we have a General Election around the corner, many will be worried that a fresh dose of uncertainty could take the wind out of the market’s sails.

“However, there’s a much bigger picture here that politicians need to address – we have a broken housing market, where young people struggle to afford a deposit, and where moving home is an expensive and deeply frustrating process that nobody relishes.”

However, he insists: “But it doesn’t have to be this way; the election is a golden opportunity for all sides to spell out how they can make it easier for people to move and get on the ladder.”

Following last year’s Stamp Duty hike, has your activity in the property market slowed down?

Get Free Property Listings for Landlords Online

Published On: April 11, 2017 at 8:14 am

Author: Em Morley

Categories: Landlord News

Tags: letting a property,property listings,property sales,rental properties

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