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Property transactions have jumped 27% in one month

The number of property transactions registered in England and Wales jumped 27% between November and December 2020, the Conveyancing Market Tracker from Search Acumen found.

The final month of 2020 saw 73,142 completed property transactions logged by conveyancing firms, up from 57,632 in November 2020.

The number of active conveyancing firms has recovered from a low during the first pandemic-induced lockdown, increasing by 58% to 3,808 in Q4 from a low of 2,411 in Q2 2020.

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Andy Sommerville, director at Search Acumen, said: “This latest data reveals how much more resilient the property market has been to pandemic-induced shocks compared to the wider economy.

“The surge in activity in the property market can be largely attributed to buyers rushing to capture the savings on offer through the higher stamp duty threshold.

“Demand has also been stimulated by a change in consumer appetite for properties outside of cities with access to green spaces, as more people than ever before are working from home.”

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He added: “The stamp duty deadline has put enormous pressure on the conveyancing industry and the traditional processes underpinning much of it, not to mention putting lawyers’ stress levels and patience to the test.

“This capacity crunch is set to escalate over the next few months and stretch the limits of existing working practices. The conveyancing market is crying out for innovation to better respond to consumer demand.”

BY RYAN BEMBRIDGE

Source: Property Wire

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Number of residential transactions up by 8.1%

The provisional seasonally adjusted estimate of UK residential transactions in October 2020 was 105,630, 8.1% higher than October 2019, according to data from the HMRC.

On a monthly basis, the number of UK residential transactions saw a 9.8% uplift.

Looking to non-residential transactions in October 2020, this figure stood at 9,140, which was 5.1% higher year-on-year, and up 6.2% on September 2020.

In addition, on a non-seasonally adjusted basis, there were 121,740 residential transactions in October 2020 which is a year-on-year increase of 13.7% and 23.7% higher than in September 2020.

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There were 9,840 non-residential transactions in October 2020, non-seasonally adjusted, which was down 6.1% on October 2019 however, up 12.8% month-on-month.

Sam Mitchell, chief executive of Strike, said: “October was another busy month for the housing market, with transactions still rising despite the tougher lockdown restrictions.

“The government’s stamp duty holiday has created such a strong pipeline of activity that we believe this pattern could continue right up until the end of March.

“It’s shaping up to be a phenomenal end to the year for the UK property market.

“News of a vaccine has boosted confidence, and people are still rushing to benefit from the stamp duty holiday incentive – both contributing to us having a record-breaking day for offers just last Monday.

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“Regardless, we don’t expect any change in the rising number of people looking to move in light of changing circumstances, with the lockdown baby boom and flexible working being two of the many reasons we’ve had more sellers than ever knocking at our door.”

Nigel Purves, chief executive of Wayhome, added: “The HMRC has reported a continued rise in the number of transactions in the residential property market, likely as buyers rush to complete before the stamp duty cut ends in March.

“The property boom is so far showing no signs of slowing down, and there is a risk of a two-track market emerging, where those who can afford to buy are accounting for the increase in property transactions and the reluctant renters and first time buyers are left behind.

“It’s time we address how to even the playing field when it comes to homeownership.”

Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “The pent-up energy buyers have brought to the housing market since the end of the first national lockdown hasn’t abated and transaction volumes continue to climb.

“Deal levels have recovered from the April slump and are now higher than last year’s figures and, with data from the Bank of England showing mortgage approvals in September represented the highest levels of agreed borrowing since before the Global Financial Crisis, this trend looks likely to continue over the coming months.

“However, with the stamp duty discount deadline looming in March, sellers and buyers alike will feel the pressure to get the deal over-the-line as soon as possible, heaping pressure on the property industry as we close out the year.”

By Jake Carter

Source: Mortgage Introducer

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Property Transactions Are Back To Pre-Covid Levels

There were just over 98,000 residential property transactions in September, 0.7 per cent lower than in September 2019 but 20.3 per cent higher than in August this year.

The figures come from the Inland Revenue which logs monthly property transactions completed in the UK with value of £40,000 or above for Stamp Duty Land Tax purposes.

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‘Provisional residential transactions estimates in September 2020 have noticeably increased compared to August 2020, likely due to the continued release of pent-up demand within the property market since March 2020 and early impacts from the temporarily increased nil rate band of SDLT’, said the Revenue.

Residential transactions decreased significantly in April 2020, reflecting the impact of the Coronavirus and public health measures taken in response.

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Between 2005 and 2020, monthly transactions have varied between 160,000 (the height hit in 2006) and a low of 40,000 in August this year. At close to 100,000, the number of transactions is back up to levels seen consistently since 2013.

The nil rate band for residential SDLT was increased to £500,000 from 8 July 2020 to 31 March 2021 for transactions in England and Northern Ireland.

Source: Residential Landlord

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Pent up demand sees residential transactions increase in July

The provisional seasonally adjusted estimate of UK residential property transactions in July 2020 was 70,710, 14.5% higher than June 2020, likely due to pent up demand following lockdown, according to the HMRC UK Property Transaction Statistics.

However, this was 27.4% lower than July 2019.

The seasonally adjusted estimate of UK non-residential property transactions in July 2020 was 8,380, 18.3% low er than July 2019, but 27.6% higher than June 2020.

The non-seasonally adjusted estimate of residential property transactions was 80,490, 23.2% lower than one year previous.

The non-seasonally adjusted estimate of non-residential property transactions in July 2020 was 8,770, 16.6% lower than July 2019.

The Q2 2020 residential transactions count is the lowest quarterly total within the period of April 2005 to April 2020, reflecting the impacts of coronavirus.

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Mark Harris, chief executive of SPF Private Clients, said: “While it’s still too early for the stamp duty holiday to feed through to HMRC’s July numbers, transactions continued to pick up owing to pent-up demand.

“Of much more interest will be September’s data when the full impact of the stamp duty exemption will be felt and the bustle of activity that we are seeing will feed through to the official numbers.

“Lenders remain keen to lend although they are exceptionally busy due to higher demand, dealing with the summer holidays and other demands placed on them by the fallout from the pandemic, with closer scrutiny of borrowers’ incomes meaning everything is taking longer.

“Rates are still competitively priced although at higher loan-to-values in particular they are creeping up.”

Anna Clare Harper, author of Strategic Property Investing, said: “The upward trend in transactions data reflects a piece of positive news for all of us: the housing market is moving again after a complex start to the year.

“This change reflects a release of pent-up demand and supply.

“What we’re seeing in the market, which will be reflected in August and September’s data, is the further influence of recent and temporary policies.

“The temporary Stamp Duty Land Tax change is helping those home buyers and investors who are looking to buy a property worth less than £500,000 in particular.

“We don’t know for sure what will happen next: economically, or in policy. But what we can predict accurately is that two crucial factors – economic confidence and policy – will prove fundamental to the future of the UK housing market.”

Alan Cleary, managing director, mortgages at OneSavings Bank, said: “It’s no surprise that market activity is down on 2019 transactions, but it’s encouraging to see a significant uptick since the easing of lockdown.

“With the market experiencing its busiest month for enquiries in more than 10 years in July, according to Rightmove, as a result of pent up demand and the government stimulus on stamp duty we should see an improvement in transaction levels in months to come.

“First time buyers, homeowners and landlords wishing to take advantage of the stamp duty relaxation should move sooner rather than later to ensure they don’t miss the deadline.”

By Jessica Bird

Source: Mortgage Introducer

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Residential property transactions jump 32% in June – HMRC

Residential property transactions in June increased 32% month-on-month to 63,250 transactions, HMRC figures show.

However, this is still far below the transaction levels seen in the same month last year. Year on year, transactions were 36% lower than June 2019.

Non-residential transactions rose 31% to 7,340 in June but annually, this was represented a 27% decline on the same month last year.

Market position to be seen in months

Andrew Southern, chairman of Southern Grove, said: “The annual decline isn’t particularly flattering but it’s the trajectory that’s most important. The next few months are going to make June look like an amuse-bouche rather than an entrée.

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“A healthy improvement in volumes month-on-month points to a large proportion of agreed sales that were knocked back, due to the pandemic, finally reaching completion.”

Paul Stockwell, chief commercial officer at Gatehouse Bank, added: “Whilst the transactions figures have not improved significantly since May, the nature of the property market means people have not had enough time to get through the moving process.

“It will take a bit longer for us to see how much new activity there has been in the market since it reopened in May.”

Stamp duty concerns

Mike Scott, chief property analyst at Yopa, said the recent stamp duty holiday in England and Northern Ireland, as well as similar initiatives in Scotland and Wales would help bring some transactions forward to this year but suggested this would not have a lasting impact.

“After a spike in the number of completions in March 2021 there will probably be another fall in the second quarter of next year as the normal rate of stamp duty is reimposed,” he said.

Tomer Aboody, director of MT Finance, also agreed the tax break had a positive effect on the market but said changes to capital gains tax could set that back.

Aboody said: “If the government increases capital gains tax on principal home sales, it will push us back again so any progress made by the stamp duty reduction will be swiftly lost.

“We need more stimulus via reduced stamp duty to the upper end of the market and hope for this in the Autumn Budget.”

Written by: Shekina Tuahene

Source: Your Money

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HMRC: Property transactions up 16% month-on-month

Residential property transactions were up 16% on a monthly basis in May as the UK eased its way out of lockdown.

HMRC figures revealed that there were 48,450 residential transactions during the month, but that is still 49.6% lower than in May 2019.

Non -residential property transactions stood at 5,880, 42.2% lower than May 2019 and 14.1% higher than April 2020.

Andrea Olivari, co-founder at digital lender Selina Finance, said: “On the whole, there are gradual signs that the property market is moving, with the latest industry figures revealing an average house price increase of 1.9%.

“So the rise in property transactions is reassuring, particularly given the figures are taken from May and the market wasn’t officially re-opened until mid-way through the month.

“It will be interesting to see if this trend continues throughout June or whether these figures are down to a release of pent up demand from the lockdown period.

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“Whether the increase continues in the long term is dependent on an array of factors, particularly the “new normal” of homeworking post-COVID and how this influences homebuying decisions.”

Anna Clare Harper, author of Strategic Property Investing and co-founder of property fund Anglo Residential, added: “Recent events and practical restrictions such as physical valuations and obtaining finance mean it is hardly a surprise that property transactions have fallen dramatically year-on-year.

“However, what we can see from the HMRC data and from what we are hearing from investors, appetite is responding quickly.

“We are seeing the signs of strong appetite to move forward with investments in the UK residential market in particular.”

By Ryan Fowler

Source: Mortgage Introducer