Posts with tag: property sales

Agency Express’ Property Market Round-Up of 2016

Published On: January 4, 2017 at 9:36 am

Tags: house prices,property market,property sales

With January now in full swing, Agency Express has released its property market round-up of 2016, looking back at how the industry changed over the year:

January

2016 started out on a very strong foot, with buoyant monthly growth in both new listings for sale, up by 93.7%, and properties sold, up by 31.2%. Looking back at Agency Express’ historical data, these increases were the largest for January since the Property Activity Index began in 2007.

January’s unseasonal growth appeared to be primarily driven by a large increase in mortgage approvals throughout December 2015, while a flood of landlords put their properties on the market to avoid the impending Stamp Duty changes on additional homes.

February and March

January’s buoyant trend continued into February, as the firm witnessed further growth across the market, fuelled by a sense of urgency to complete sales before the Stamp Duty hike in April. Month-on-month, new listings for sale rose by 23.3%, while the number of properties sold increased by 37.6%. The increase in activity marked a particularly strong month for the North West. Following five slow months, the region recorded a 51% rise in properties sold.

However, heading into March, the momentum did not continue. But with an early Easter holiday, a slowdown was not unexpected. Across the month, the amount of properties sold dropped by 10%, while the number of properties for sale fell by 4.7%.

April and May

Agency Express’ Property Market Round-Up of 2016

April and May were equally as mixed as the previous period. Following the slowdown in activity over March, April bounced back, with new listings up by 8.2%. Nevertheless, the amount of properties sold did not show the same resilience, declining by 1.5%. It was in this month that the Council of Mortgage Lenders claimed that the property market had been distorted by the Stamp Duty changes, and that it expected to see 10,000 fewer mortgage transactions each month in April, May and June than would otherwise have been the case, which would offset the increase in activity recorded in previous months.

During May, the amount of properties sold fell even further, by 4.4%, while new listings dropped by 3.7%. Although a slowdown in activity over May is not unusual, the decrease was greater than in years previous, reinforcing that the Stamp Duty hike did indeed distort the market.

June to September

The property market recorded growth over June, with new listings up by 10.6% and properties sold by 2%. These increases also appeared consistent with reports from Dr. Rebecca Harding, the Chief Economic Advisor at the British Bankers’ Association, who stated: “Mortgage approvals had bounced back following the sharp drop caused by the initial reaction to the Stamp Duty surcharge.”

July remained true to trend, with a slowdown at the start of the summer holidays. However, the number of properties sold during August bucked the seasonal trend, rising by 2.8% – a record best for the month. As we entered September, normal activity resumed.

October and November

During October, a seasonal slowdown is expected. The number of properties sold rose by just 0.3%, while new listings dropped by 11.2%. While the adjustment came as no surprise, the decrease in figures was greater than those recorded 12 months previous, when new listings fell by 4.3% and properties sold increased by 2.7%.

Moving into November, this decline was expected to continue. However, the month saw an unseasonal spike, with new listings decreasing by just 4.7% (compared to 12.2% in 2015) and properties sold by 1.8% (compared with 14.7% in the previous year). In its property market round-up, Agency Express found that the industry has not experienced this level of activity in November since 2013.

December

The firm’s latest data has, as expected, revealed declines in December’s property market. Staying true to trend, new listings dropped by 43.8%, while the amount of properties sold fell by 37%.

Commenting on its property market round-up of 2016, the Managing Director of Agency Express, Stephen Watson, says: “As the UK’s largest estate agency board service provider, we are the first to witness growth in the UK property market. The services we deliver are closely tracked and monitored via our estate agency board management system, Signmaster3. We collect board movement data 24 hours a day, seven days a week, from a property being placed on the market to completion of sale. As a result, we are able to share this information with you and compare what is happening on the streets to what is being reported by financial institutions.

“Over the past 12 months, we’ve witnessed a mixed property market, which has been heavily affected by various Government changes and announcements. As we move into 2017, and with predictions of house price increases, it will be interesting to see how the market reacts over the next six months.”

We will keep you updated of all the changes in the UK property market at LandlordNews.co.uk.

Property Sales Buck the Usual Seasonal Trend

Published On: December 28, 2016 at 11:43 am

Author: Em Morley

Categories: Property News

Tags: housing,property market,property sales,winter

Property sales bucked the usual seasonal trend in November, according to the latest figures from HM Revenue & Customs (HMRC).

Property Sales Buck the Usual Seasonal Trend

Transactions typically experience a seasonal decline in November, however, the recent property sales statistics show that there were 104,670 residential deals last month, up by 5.1% on October.

However, this is down by 4.3% on an annual basis, as there were 109,370 property sales in November last year.

Broken down, there were 88,860 property sales in England in November 8,990 in Scotland, 4,710 in Wales and 2,110 in Northern Ireland.

The Executive Director of Your Move and Reeds Rains, Adrian Gill, comments on the figures: “It is not unusual to see a lull in buying and selling [at this time of year], so a slight monthly surge in transactions highlights the ongoing appetite from buyers.

“However, the annual decrease these figures show is likely due to the continuing squeeze on affordability. This is putting pressure on first time buyers, who are finding it increasingly hard to take their first steps onto the property ladder.”

He adds: “The Government’s recent announcement of a £1.4 billion investment into the housing market, as well as the building of 40,000 new affordable homes, is welcome news towards addressing this issue. Hopefully, this funding will start to make a real difference and we will see more buyers secure their dreams of homeownership.”

The Chief Executive of My Home Move, Doug Crawford, was slightly more positive: “The market is well placed to keep growing as we look to 2017.

“Since the referendum, transaction levels have remained stable largely, which shows that the fundamentals in terms of supply and demand mean the market will weather any further macroeconomic uncertainty.

“In the long-term, demand for both rented and owner-occupied accommodation will support price rises and sales volumes.”

He continues: “There will undoubtedly be challenges for the market over the next 12 months, with the triggering of Article 50 and changes to landlords’ tax relief looming on the horizon.

“However, the property market has shown it is more than strong enough to overcome these obstacles.”

Over 80% of properties sold for less than asking price in November

Published On: December 22, 2016 at 11:19 am

Author: Em Morley

Categories: Property News

Tags: buy-to-let landlords,property,property sales,supply of stock

The most recent data from the National Association of Estate Agents has revealed that over four in five properties was sold for less than their asking price during November.

This was the highest number of homes purchased for less than their valuation since records began in 2013 In October, 82% of properties were sold under their asking price, in comparison to 76% in November 2015.

Supply and Demand Falls

In addition, the report indicates that both supply of stock and overall demand fell during November, as did the number of overall sales.

House hunters slipped by 22% from October to November, from 440 to 344 members per branch respectively.

The number of properties registered was 39 during the last month, representing a 9% decrease from October, when 43 were recorded.

29% of sales were made to first-time buyers in November, 3% down from October.

Over 80% of properties sold for less than asking price in November

Lack of Confidence

Mark Hayward, Managing Director, National Association of Estate Agents, observed: ‘Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form. We expect this is still the case, and this month’s slow-down is simply down to seasonality – many sellers hold off until January to put their properties on the market, and likewise buyers are more inclined to start the year with a property search, rather than attempting it over Christmas. Likewise, although a large number of sales were made below asking price in November, this can also be put down to the time of year.’[1]

[1] http://www.propertyreporter.co.uk/property/4-out-of-5-properties-sold-for-less-than-asking-price-in-november.html

London House Prices Expected to Drop Following Collapse in Sales

Published On: December 6, 2016 at 9:29 am

Author: Em Morley

Categories: Property News

Tags: house prices,London,property market,property sales

London House Prices Expected to Drop Following Collapse in Sales

London house prices are expected to drop following a collapse in property sales. Sales volumes across the capital are now just over half of what they were before the 2008 financial crash, and 48% lower than at this time last year.

Earlier this year, after the 3% Stamp Duty surcharge for additional homes was introduced, sales volumes dropped to below 100 transactions in a month in Westminster, to a record low of 84, according to London estate agent Portico.

Sales levels have remained critically low since April, down by a huge 60% in prime central London when compared to last year.

As London house prices typically follow sales trends, the first year-on-year price decrease since the recession has been recorded in Westminster, of 1.1%.

London house prices are clearly starting to react to the drop in sales volumes; Portico forecasts a 6-7% price decrease in prime central London, which is likely to spread out to Greater London.

However, the agent points out that a decline in London house prices could reinvigorate property sales, as housing would become more affordable for first time buyers. Despite this, it does not expect this scenario to occur any time soon.

The Regional Sales Director of Portico, Mark Lawrinson, says: “Unless action is taken to re-establish the natural movement of the whole market, it’s likely this could be a serious issue and we will see prices fall.

“But it’s not all bad news for landlords or investors. The population is growing, the job market is buoyant, and people are still coming to live in London – so while supply is decreasing, demand is continuing to grow. It’s this imbalance between supply and demand that is likely to increase rental prices, while weaker transaction prices will push up rental yields.”

While the London property market may not be working for everyone, it appears that landlords can still find lucrative investment options in the capital.

UK Property Market Bucks the Seasonal Trend

Published On: December 2, 2016 at 9:24 am

Author: Em Morley

Categories: Property News

Tags: Christmas,property for sale,property market,property sales

The UK property market has bucked the traditional seasonal trend usually seen at this time of year, according to Agency Express’ Property Activity Index for November.

During November, it is typical to experience a slowdown in activity in the UK property market as we head for the Christmas period. However, last month’s figures show unseasonal strength – new property listings dropped by just 4.7%, compared to 12.2% in 2015, while the number of properties sold fell by 1.8%, compared with 14.7% last year.

UK Property Market Bucks the Seasonal Trend

Reviewing its historical data, Agency Express reports that the UK property market has not experienced this level of activity since 2013.

Across the UK, 11 of the 12 regions included in the index recorded robust figures for November.

Last month’s top performing region was East Anglia, where new listings rose by 0.4% and properties sold increased by 2.4% – a record best November for the region.

Other regions bucking the seasonal trend include:

Properties sold

North East: +24.3%
Scotland: +6.9%

New property listings

Central England: +11.3%
South East: +5.9%
London: +0.6%

The only region to record a monthly decline in November was Wales. New property listings dropped by 14.8%, while the amount of properties sold was down by 3.2%. However, the decline in the number of properties sold was much lower than that recorded in 2015, when it fell by 11.8%.

Stephen Watson, the Managing Director of Agency Express, comments: “A surprisingly buoyant month for November; month-on-month figures have reported positively across the nation, and year-on-year activity has also increased. It will be interesting to see if the change in trend will have a positive effect on the forthcoming weeks, where we traditionally witness a slowdown until January.”

Have you decided to buck the seasonal trend by buying or selling a property at this usually quiet time of the year?

First Time Buyer Sales at Highest Level on Record

Published On: November 29, 2016 at 9:27 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,housebuilding,property market,property sales

The number of first time buyer sales in October was at the highest level on record, according to the latest Housing Market Report from the National Association of Estate Agents (NAEA).

First Time Buyer Sales at Highest Level on Record

Last month, a third (32%) of total property sales were made to first time buyers – up by 9% on September and the highest number since records began 16 years ago in 2000.

The last time the number of first time buyer sales was at a similar level was in October last year, when 31% of sales were made to these purchasers.

The number of sales agreed per NAEA member branch stayed steady in October, at an average of nine.

Property supply

The amount of properties available per branch in October was 43 – up by 7.5% on September and the highest number recorded since March this year.

Property demand

In October, the average number of house hunters rose by a third (32%), from 333 to 440 registered per member branch. This is the highest level seen since February this year, when there were 463 prospective buyers on estate agents’ books.

The Managing Director of the NAEA, Mark Hayward, comments: “This month’s report paints a positive picture for the UK housing market. Our findings over the last few months indicated mild uncertainty immediately following Brexit and, last month, we even saw sales to first time buyers fall. After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to first time buyers this month – proof the market is beginning to bounce back.

“Clearly what we need now though is a clear plan as to how the Government is going to tackle the chronic shortage of homes that we are facing. During the Autumn Statement, the Chancellor announced a boost to housebuilding, which is a start, but sadly nowhere near enough. We have high hopes for the Housing White Paper, as this will set the housing strategy and intent for this Government going forward.”

With first time buyer sales now at a record high, will landlords begin to see a slowdown in potential tenants? LandlordNews.co.uk will continue to keep you updated on tenant demand and the wider property market, and how this will affect you.