UK property market sees an increase of transactions during March.
As expected, March was a busy month for the property market with a host of broken records and rushes to complete on property transactions. Many scrambled attempts were made to beat the new Stamp Duty surcharge on second homes and buy-to-let properties that came into effect on the first of April.
As demand remained high and supply still scarce, March was a landmark month as the average UK property price breached the £300,000 mark. This figure represents a 50% rise in just over 10 years. The mismatch between supply and demand has resulted in record highs for property prices all over the country. In the North-West, Rightmove shows that the average house price for March 2016 was £177,437. This is up 1.7% from the previous month and 3% from March 2015.
That being said, high levels of activity were still announced all over the country. England’s largest conveyancer, My Home Move reported that they completed 1,210 sales in the 24 hour deadline day alone. Across the month of March, a record 6,178 transactions were completed. This figure was 22% higher than their previous record from October the previous year.
So, what does this mean for the rental market?
Well, in the first week that the tax hike came into effect, Rightmove has seen increased rental listings of 20.6% from the last week in March. This is due to the influx of completions that took place during the last few days of the month. Manchester saw a 28.7% jump in the advertisement of available rental property. So it appears as though temporarily at least, the transaction influx has had a positive effect on the rental market.
City Centre Branch Manager Ripon Abdul commented, “We have seen a noticeable increase in the number of properties that we have brought on to our books at the beginning of this month. I am looking forward to seeing now what effects the recent residential property announcements will have on the strategies of landlords and investors going forward.”
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