Whats happening in the UK property market?
Residential property deals in the UK increased by nearly 10 per cent year-on-year to January according to recent statistics from the HMRC.
The amount of property transactions that took place at the start of the year was significantly higher than at the same point in 2015, with 105,940 deals being completed. While current conditions make it difficult to predict the immediate future of the market with certainty, it can definitely be said that it is in a much healthier position than it was in January of last year.
An increased demand has led to a steady upturn in house prices across the country. A shortage of homes coming on to the market and the announcement of new stamp duty regulations for investment can partially account for the rise. The Land Registry has recently reported house prices grew by 2.5 % in January. (£4,700 to the average cost of a home.) The year-on-year value change has been recorded at 7.1 per cent, meaning the average price of a home in England is £191,812.
Fallowfield Branch Manager Steve Curley commented that he expected the number of sales agreed will continue to rise in coming months. “We will know the full effect of the recent stamp duty legislative changes by the beginning of April” he said. “Until this point I believe we will carry on seeing a buy-to-let surge.” He continued, “While it may be a turbulent time for some, the progress of house prices so far in 2016 will make welcome reading for homeowners contemplating selling in the coming months. With the level of mortgage lending at its highest rate since 2007, and enquiry levels also seeing a spike, market conditions are favourable at the minute for sellers.”
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