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Highest Number of Property Sales for the Last 10 Years Recorded in March
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
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 1st 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.”
