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UK property sales down month on month and on an annual basis
UK residential property sales fell by 3.4% between March and April and were 5.6% lower compared to the same period last year, the latest published figures show. The provisional seasonally adjusted UK property transaction count for April 2015 was 97,020 residential and 9,910 non-residential transactions, according to the official data from HMRC. Adrian Gill, director of Your Move and Reeds Rains estate agents, believes it can be put down to uncertainty in the run up to the UK general election at the beginning of May. ‘Only a few weeks ago, the outcome of this general election was a mystery and buyers were sitting on the fence to watch the spectacle unfold. Sales were stalling, and house price growth was also braking in many places across the country,’ he said. ‘Now, confidence is soaring and the prospects for the property market look rosy. Any ground lost before the vote will be made up by the ensuing sudden sprint, as demand now picks up the pace off the back of less stamp duty, competitive mortgage rates, and support schemes like the Help to Buy ISA,’ he explained. ‘This new unbridled momentum looks set to carry the market forwards for the remainder of the year, but now the election rhetoric has died down, the new government needs to get to the heart of the housing market’s remaining obstacle, a fundamental lack of available homes,’ he added/ Peter Rollings, chief executive officer of Marsh & Parsons, agrees. ‘Political anxiety clearly stalled housing market activity momentarily. Not many would have predicted an outright majority government, but the conclusive election result has launched a rocket of confidence in the property market, with buyers and sellers able to act with certainty again,’ he said. ‘The market above £2 million, which is already starting to digest the new higher stamp duty costs, is now free from the fear of an unfriendly mansion tax that would have encroached across much of the capital,’ he pointed out. ‘With the election done and dusted, we expect to see the market really awaken to the opportunities that are on offer with buyers acting quickly to take advantage of more available stock, better mortgage rates, lower stamp duty for those buying under £937,000 and Help to Buy schemes,’ he added. Continue reading
UK first time buyers waiting longer to get on housing ladder, new research suggests
First time buyers in the UK are having to wait longer than planned to take their first step onto the property ladder according to new research. Some 65% have had to wait longer than they hoped to move into their dream home, while only 8% managed to become a home owner quicker than planned, the first time buyer’s survey from Clydesdale and Yorkshire Banks shows. The figures show a slight improvement on the previous 12 months when 68% had to delay getting on the property ladder, however the largest percentage, 17%, of those who are unable to meet their home ownership deadline are waiting between one and two years longer than planned. The challenge to get on the property ladder means that the majority of new home owners plan to stay in their first property for a number of years. Some 21% plan to stay for between four and five years with 19% having no intention of moving from their home for nine to 10 years. In both the Midlands and the North East the largest percentage plan to stay in their first home for between nine and 10 years in comparison to London, South West and Wales where the highest number aim to keep the keys to their first home for between three and four years. ‘Clydesdale and Yorkshire Banks have extensive experience of helping first time buyers get onto the property ladder and we know how difficult it can be to buy your first home,’ said Steve Fletcher, director of retail banking. ‘It is positive that our research shows that there is a small improvement on the previous year, however almost two thirds of first time buyers still face challenges in meeting their own timescales for being a home owner,’ he added. Clydesdale and Yorkshire Banks are currently offering a range of first time buyer mortgages with a £1,000 cashback. These include a three year fixed rate mortgage with a 90% LTV with a rate of 3.59% and a three year fixed rate mortgage with a 95% LTV and rate of 4.89%. Continue reading
Scottish house prices rise twice as fast as in England and Wales
House prices in Scotland have increased by 11.2% in the last 12 months, twice as fast as the 5.6% seen in England and Wales, the latest index shows. In March alone average property prices in Scotland increased by 5.4% or £9,200 ahead of the new Land and Buildings Transaction Tax (LBTT) being introduced in April, taking the average price of a home to £178,930. At the same time completes sales increased 29%, mainly at the top end of the market where the new tax is higher. Indeed, some 36 homes worth £1 million or more were sold, the highest number ever in a single month. Edinburgh and the surrounding area saw an especially strong surged, with East Lothian prices up 11.8% in one month, the Your Move/Acadata index also shows. ‘In what would have been an unimaginable trend just a year ago, house prices are now rising faster in Scotland than in London,’ said Christine Campbell, regional managing director of Your Move. She pointed out that part of the surge was due to a short term scramble to avoid the new LBTT which was introduced on 01 April. ‘For the top of the market especially, a pre-deadline rush has boosted the average price paid in March, so the latest surge in prices is unlikely to be sustained to quite the same extent in April under the new regime,’ she explained. But she also pointed out that even before the one-off effect of looming tax changes, Scottish house prices were rising on an annual basis by 6% in February, already on a par with 6.8% south of the border. As prices cool across the rest of Britain, Scotland has seen the opposite trend, with prices accelerating upwards. ‘Once the new tax regime has become an established feature of the property market, the effects could be different again. On the face of things, there are clear benefits for those buying a home for less than £254,000 as they will have to pay less tax than under the old system,’ said Campbell. ‘But it remains to be seen if this will be quickly countered by higher prices for these properties, as buyers with a little more buying capacity just bid up the average price for these homes. On the other hand, by far the clearest effect is already for the top of the market. There were a record number of million pound transactions in March as wealthy buyers rush to save thousands before the onset of the new law,’ she explained. Continue reading
