Posts with tag: property sales

Final Pre-Brexit House Price Data Revealed

Published On: July 21, 2016 at 8:43 am

Tags: average house price,Brexit,house price growth,house prices,property sales

The final pre-Brexit house price data to be released has been published by the Land Registry, which found that annual price growth has been led by London, while the North East storms ahead with the highest monthly increase.

The figures, for May 2016, show that house prices across the UK have risen by 8.1% on an annual basis, taking the average property value to £211,230. On a monthly basis, house prices rose by 1.1% on April.

The year-on-year growth for the UK was led by England, where house prices increased by 8.9% over the last 12 months, taking the average value to £226,807. Monthly house price growth stood at 1.0% in May.

Final Pre-Brexit House Price Data Revealed

Wales saw an annual price rise of just 3.6%, which takes the average property value to £142,568. Over the month, house prices were up by 0.9% in May.

However, the greatest annual price increase was recorded in London, where values are up by 13.6% since May 2015 and the average price now stands at £472,163. On a month-on-month basis, values rose by 1.5%.

Regional house price data

Although London experienced the greatest increase in annual house price growth, the North East recorded the highest monthly increase, at 2.1%.

Despite this, the North East saw the lowest annual price growth, of 3.2%.

The most significant monthly price fall was experienced in the North West, with a decline of 0.3%.

Property sales

Following a surge in property sales in March 2016, ahead of the Stamp Duty deadline for buy-to-let landlords and second homebuyers, transactions fell by 42.3% in April to the lowest level since May 2013. Data for May 2016 shows that sales have only recovered slightly since this substantial decrease.

Figures for March, the most up-to-date Land Registry data available, show that the amount of completed house sales in England soared by 52% to 102,597 annually.

Wales also saw a huge increase, of 49%, to 5,002 sales. However, London experienced the greatest rise in property sales, of a huge 60.6%, reaching 14,783 in March.

The founder and CEO of eMoov.co.uk, Russell Quirk, comments: “The latest official house price index for May and last of the pre-Brexit property landscape echoes that of its predecessors from Halifax and Nationwide.

“A healthy annual increase of nearly 9% across England, with May continuing the upward trend seen for a while now, with a further 1% increase.”

He adds: “However, despite London seeing the largest annual growth, perhaps the shock of the bunch is the North East outperforming the capital with the greatest monthly growth of 2.1%.

“We’ve monitored the slow but steady demand growth in the North East, and it seems that this is starting to translate into an increase in prices, albeit marginal at the moment.

“In terms of sales volume, the market has certainly levelled out since the artificial spike of April’s Stamp Duty deadline. Although there has only been a slight recovery, this is to be expected and will probably take a month or two more before it returns to a level we might expect for this time of year.”

Property Sales and New Instructions Surge After Brexit

Published On: July 6, 2016 at 11:06 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,property industry,property market,property sales

London estate agent Douglas & Gordon has reported a surge in both property sales and new instructions for the week following the Brexit vote.

Instructions almost trebled compared to the previous week, while sales were up by 11%.

Many of these property sales were completed by people taking advantage of the weak pound in the immediate aftermath of the shock result. At the current sterling/dollar exchange rate of USD1.31, London’s prime central areas are now 25% cheaper than they were two years ago.

Property Sales and New Instructions Surge After Brexit

Douglas & Gordon has reported interest from individuals based in Nigeria, the USA, UAE, Russia and China – all of whom are buying in USD, and most of whom were interested in property priced between £1m-£2m.

Since the start of the year, Douglas & Gordon Corporate Services has received 24% more enquiries from relocation agents, reflecting an annual increase in the amount of companies looking to move employees to London.

Enquiry levels last week, following the Brexit vote, were at their highest level since the start of the year.

The CEO of Douglas & Gordon, James Evans, comments: “Politically we may be in uncharted waters. However, many of our clients who delayed listing their property until June 24^th were simply waiting for a result one way or the other.

“London property transactions happen for a variety of reasons and our experience is that those who are wanting or needing to buy, sell, rent or let will continue to do so.”

Outside of the capital, Berkshire-based Romans reports that in the week after Brexit, just 20 out of 900 property sales agreed were cancelled. The agent claims that this is only marginally more than during a normal trading period.

The firm also experienced an 8% rise in traffic to its website in the week after the leave vote.

The Managing Director of Romans, Peter Kavanagh, says: “I strongly believe that in six months, if not before, we’ll be looking back and wondering what the fuss was all about.”

Adam Hesse, of Aston Mead Land & Planning, insists that the industry should work together to send out positive signals: “There is a danger that people will believe the warnings and then it becomes a self-fulfilling prophecy.

“It was a democratic decision, so we have to abide by the outcome and move on. In effect, we’re all Brexiteers now. All this talk of a second referendum is only making things worse. The result on the day was conclusive. What if a second vote went the other way? What do these campaigners want – the best of three?”

He adds: “The reality is that we’ll be leaving the EU, and our job in the property sector is to help the transition work as effectively as possible. That means we need an end to scare stories and doom-and-gloom scenarios.”

Should You Continue With Your Property Purchase or Sale Following Brexit?

Published On: July 3, 2016 at 8:23 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,mortgages,property market,property sales

You were happily looking for a new property, or to sell your property, and the country voted for Brexit. What seemed like a solid, healthy investment may now seem less reliable. So should you continue with your purchase (or sale) now that the UK has decided to leave the EU?

The Governor of the Bank of England, Mark Carney, has recently announced that interest rates may be cut following the shock vote last week. The Bank of England’s full statement, released the day after the Brexit announcement, can be found here: /bank-england-releases-statement-following-eu-referendum-result/

Should You Continue With Your Property Purchase or Sale Following Brexit?

If interest rates do come down, then mortgage costs will inevitably be affected, which could give you the opportunity for a better deal.

So, if you’ve had your offer accepted, secured a mortgage and maybe even exchanged contracts, should you pull out?

Naturally, if you have exchanged contracts, then there is nothing you can do without incurring significant penalties. However, if you haven’t got this far, it may be worth waiting to see whether mortgage rates come down in the near future. If they do, you could possibly renegotiate your mortgage to get a better deal.

The majority of mortgages are offered on a fixed rate basis. However, if interest rates remain as low as expected, it could be more affordable than ever to have a tracker mortgage.

Some lenders will allow you to change your mortgage if you pay an arrangement fee, although this changes from lender to lender. It is important to keep in touch with your mortgage provider at this time, to find out which deals are available and how much it would cost to renegotiate.

If interest rates drop by a quarter point or so, which is likely, and your lender does not react to the change, but others have and are offering better deals, it could be wise to change. However, be aware that this could take some time and could be costly.

Although Zoopla reported before the EU referendum that house prices would fall by 20% if we voted to leave, the latest house price indices suggest that values are continuing to climb. Whether they decline or not will be down to wider economic conditions, although current uncertainty may lead to a decrease in transactions.

If demand does wane, this could actually be a good thing for buyers. Fewer homebuyers in the market will give greater buying power and the opportunity to negotiate lower prices.

If you have been looking for a property for a long time and have finally found the one you want, it’s a good idea to go for it at this point in time, as property prices don’t look to be coming down substantially.

However, if you’ve only recently started your search, it could be wise to hold tight for a while to see whether prices come down.

General economic uncertainty will naturally affect the housing market, particularly in the near future. But since the UK will not officially leave the EU for two years, the sector will likely stabilise in this period.

If the markets do slow down in terms of activity, then mortgage lenders will need to be more competitive, which is positive for homebuyers and movers.

The London property market especially is expected to remain buoyant during this time, which is particularly good news for investors, who may find bargains during this volatile period.

Whether you decide to wait and see what happens to house prices and mortgage rates or take the plunge, the property market appears to be holding itself up in the face of uncertainty.

Homeowners Discouraged from Selling Following Brexit Vote

Published On: June 28, 2016 at 9:34 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,homeowners,property sales

Friday’s announcement that the UK has voted for a Brexit has discouraged homeowners from selling their properties, according to new research.

Homeowners Discouraged from Selling Following Brexit Vote

The survey from Plentific, conducted online by Opinium, asked 1,063 homeowners across the UK whether they are more or less likely to sell their homes following the EU referendum result.

Over the weekend, around 12% of homeowners said they are less likely to sell their properties in the next three years following the leave vote.

The proportion rises to 18% in London, and to 23% of younger homeowners aged between 18-34.

Plentific, which helps property owners find trusted tradespeople, believes that 1.7m homeowners are now less likely to sell over the next three years.

The co-founder of Plentific, Cem Savas, comments: “Last week’s result sent shockwaves through the UK, Europe and beyond.

“Our research shows a level of uncertainty for homeowners, which will impact buying and selling confidence, but continue to drive the huge demand for home improvements.”

How does the proportion of homeowners discouraged from selling their properties differ around the country?

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Following last week’s decision, the CEO of the HomeOwners Alliance, Paula Higgins, says that “the only certainty is uncertainty” in the short-term.

And while homeowners may be discouraged from selling their homes, one investment firm believes that the London property market will prove resilient to the Brexit.

With properties in the capital now around £40,000 cheaper following the vote, could investors continue to be attracted to the London property market?

Property Sales Will Rise Regardless of EU Referendum Result

Published On: June 23, 2016 at 9:12 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,property market,property sales

Property sales will continue to rise, regardless of the result of today’s EU referendum, according to an estate agent in Surrey.

David Cantell, of Cantell & Co in Richmond, believes that transaction levels will remain strong whether we vote to leave or stay in the EU.

Property Sales Will Rise Regardless of EU Referendum Result

In the past four months, the agent has witnessed a stable market, with property trading at fair prices for both vendors and buyers.

Cantell observes that pent-up demand from buyers has been building throughout the year, while vendors have adopted a wait-and-see approach ahead of the Brexit vote.

“Uncertainty breeds caution,” he says. “A definitive result, regardless of in or out, will lead to more sellers and more buyers and ultimately to more transactions after today’s vote.”

Cantell has witnessed similar trends ahead of general elections in previous years.

However, he has also seen the majority of estate agents scaremongering their clients into price reductions over the last few weeks, having over-valued at the outset.

Disappointingly, he says that it’s not just the “usual suspects” adopting this approach, but also the higher-end estate agents that are normally considered reputable and respectable.

In his own area, however, Cantell claims that demand is still strong from buyers and the firm has been agreeing property sales in May and June with no reductions in price, “proving that there are still deals to be made if you price fairly from the outset”¹.

While the property market looks to remain strong following today’s vote, the Association of Residential Letting Agents (ARLA) also reports that the lettings sector will prove resilient to the result.

ARLA member agents believe that the private rental sector will be unaffected in the short-term by the EU referendum, regardless of the outcome.

While we will have to wait until tomorrow for the result to be announced, our own research has found that over 60% of landlords and property professionals believe we should stay in the EU.

¹http://www.propertyindustryeye.com/transactions-will-rise-no-matter-what-the-result-of-todays-referendum/

Highest Number of Property Sales for the Last 10 Years Recorded in March

Published On: June 22, 2016 at 1:18 pm

Author: Em Morley

Categories: Property News

Tags: buy-to-let landlords,property sales,property transactions,Stamp Duty

The highest number of property sales for the last ten years was recorded in March this year, as buy-to-let landlords and second homebuyers rushed to beat the 1^st April Stamp Duty deadline.

The latest data from HM Revenue & Customs (HMRC) shows that more property transactions were completed in March 2016 than any month over the past decade.

Highest Number of Property Sales for the Last 10 Years Recorded in March

The most recent seasonally adjusted figures show that there were 89,700 residential property transactions in May and 10,790 non-residential sales.

This marks a 1.5% increase in the amount of residential property transactions between April and May. However, sales are down by 11.9% on May last year.

The peak recorded in March is associated with the introduction of the 3% Stamp Duty surcharge in April. Buy-to-let landlords and second homebuyers are now charged an extra 3% in the tax when they purchase an additional property.

The non-adjusted property sales figures were around 13% higher in May than in April. Over the past year, however, property transactions have dropped by 13.8%.

The CEO of estate agent Marsh & Parsons, David Brown, comments on the data: “Transaction figures in April and May weren’t quite at the level we witnessed for the corresponding period in 2015, but the huge spike in activity in March this year meant that the market had established something of a cushion, which softens the blow. Activity in April was always likely to step back after March’s flurry and April’s improvements show a market finding its more natural level again.

“After a long EU referendum campaign, the conclusion is in touching distance and the market will have a great deal more certainty once the result becomes clear on Friday. Prospective purchasers who have been delaying their decision based on the outcome will be able to act more decisively, and the market may witness a fillip akin to that often seen after general elections.”

The Director of e.surv chartered surveyors, Richard Sexton, says: “The peak in transactions driven by buy-to-let activity earlier this year made the market look artificially busy in March. And while momentum is starting to build, the property market is still finding its feet. Too many first time buyers are struggling to get a foothold on the property ladder, as saving for rising deposits is still an almighty challenge. Small-deposit loans in May fell 5.3% to total 11,981 – an unsustainable level if first timers are to return to the housing market in a big way.

“But low inflation, rising wages and stable base rates are improving finances. And lenders are doing their bit. Competition is bringing down rates and introducing more options. These may not be a lifeline to first timers scrimping for their first home, but they are a hunt that such deals may be on offer to them in the not too distant future.”