Marketing No Comments

HMRC: Residential transactions up 68.4%

Residential transactions in September stood at 160,950, 68.4% higher than September 2020 and 67.5% higher than August 2021, according to HM Revenue & Customs (HMRC).

The provisional seasonally adjusted estimate of UK non-residential transactions in September 2021 was 10,420, 20.2% higher than September 2020 and 8.4% higher than August 2021.

The provisional non-seasonally adjusted estimate of UK residential transactions in September 2021 is 165,720, 67.3% higher than September 2020 and 59.7% higher than August 2021.

The provisional non-seasonally adjusted estimate of UK non-residential transactions in September 2021 is 10,630, 17.8% higher than September 2020 and 17.0% higher than August 2021.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

John Phillips said: “As the UK housing market steadily edges closer to normality, property transactions are returning to familiar levels.

“There is no doubt that despite demand still desperately outweighing supply, the desire to move has not wilted for prospective buyers.

“Particularly those looking for larger homes as hybrid working models are adopted widely across the country and people seek office space at home. Buyers who find themselves in frenzied waters right now are – rightly so – making the most of low borrowing rates.

“As we look forward to the rest of 2021, it is safe to say that the number of buyers is not set to drop as people race to buy property before we see possible increases in interest rates.”

Stuart Wilson added: “Today’s findings are no surprise given the considerable activity witnessed in the run up to the conclusion of the stamp duty holiday.

“The holiday itself has been a resounding success, helping not only countless first-time buyers and second-steppers to move up the housing ladder, but also enabling silver spenders and last-time buyers to downsize, find more accessible housing, or move closer to family and friends.

“While the first-time buyer market was arguably the most buoyant, the stamp duty holiday encouraged more older borrowers to consider their options and we saw the tax break driving a 116% year on year increase in the number of people using equity release for property purchase.

Discover our Residential Mortgage Broker services.

“This increase in borrowers using lifetime mortgages to fund purchase activity has been sustained even after the stamp duty holiday concluded at the end of September, suggesting that it was instrumental in driving awareness around this under-used benefit of lifetime mortgages. This is but one of its many healthy legacies.”

Richard Pike says “We are all on a bit of a roller-coaster ride at the moment.

“One moment we’re up and the next we’re down.

“The housing market climbed quickly to the top during the stamp duty holiday, then it dipped as expected, and now we’re heading up again.

“In reality, we’re still riding pretty high and house prices, as reported by the ONS, continue to climb as demand for properties with more space and away from city centres remains.

“Inflation may yet play its part and the Monetary Policy Committee will have a lot to think about in its next meeting.

“However, the economy is still fragile and, although raising interest rates may be the conventional way to put a lid on rising inflation, the question is, can we afford to hamper growth after such a long period of stagnation.

“We may well see interest rates rise in the coming months, but it is by no means a certainty.

“Coming out of the pandemic was always going to be a tricky time, but for now our market is weathering the storm while many other industries are taking the brunt.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Residential transaction numbers grow 20% in August: HMRC

Government figures show that, totalling 98,000, residential transactions in the UK during August 2021 were 20.8% higher than in August 2020.

On a monthly basis, transactions of this type increased by 32%, the data adds.

It also shows that non-residential transactions, at 10,250, grew by 28.2% on a yearly basis in August – 5.8% when measured monthly.

This comes after HMRC reported transaction numbers slipping by almost 63% on a monthly basis in July.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

John Phillips says: “Property transactions are returning to a more recognisable level.

“The peaks and troughs of the past few months have been more erratic than in the past, but these should begin to level out as we move away from the stamp duty holiday.

“One thing that the latest data proves is that the tax savings were not the sole driving force behind the vast majority of moves.”

He adds: “Despite the end to furlough in a few weeks, vacancies have exceeded 1m for the first-time, so there are jobs out there, and the number of buyers is unlikely to fall significantly.

“Confidence in the economy is growing and people are now switching jobs, so this may test lenders criteria on probationary periods, but it is unlikely to be a significant blocker for many.”

Discover our Residential Mortgage Broker services.

And Anna Clare Harper looks abroad in her commentary: “The Evergrande crisis highlights how over-leveraging can bring investors and homeowners down. Regardless of transactions data, prices can go down as well as up. A big cause of this is lending; just because you can borrow to acquire property with low deposits, it doesn’t mean you should. Buyers must remember that both capital and interest repayments must be paid.

“The good news for UK house buyers lies in a key difference between the Chinese property market and the UK property market: supply constraints. In the UK, we suffer an ongoing shortage of housing stock, which in turn means prices are expected to continue to grow.

“For this reason, although Evergrande is terrifying, and UK transactions rising and falling by 32% in a month seems volatile, the UK market is likely to remain more measured in its fluctuations,” Harper concludes.

By Gary Adams

Source: Mortgage Finance Gazette

Discover our Mortgage Broker services.

Marketing No Comments

Residential transactions up 4.2% year-on-year

Residential property transactions in July 2021 were 4.2% higher, at 73,740, than in July 2020, according to HM Revenue & Customs (HMRC).

However, HMRC found that this figure was 62.8% lower than in June 2021.

The provisional seasonally adjusted estimate of UK non-residential transactions in July 2021 was 9,760, 21% higher than July 2020 and 5.9% lower than June 2021.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

Looking to the provisional non-seasonally adjusted estimate of UK residential transactions in July 2021, this figure was noted at 82,110, 1.8% higher than July 2020 and 61.5% lower than June 2021.

The HMRC provisional non-seasonally adjusted estimate of UK non-residential transactions in July 2021 was 9,730, 15.2% higher than July 2020 and 12.2% lower than June 2021.

Mark Harris said: “The stamp duty holiday focused the minds of many buyers who were already keen to move and improve their living conditions by acquiring more space both inside and out.

“Cheap mortgages have also played a significant part in the uptick in transactions and will continue to do so going forwards, even as the stamp duty holiday tapers off.

“Mortgage pricing continues to trend downwards, with a growing number of sub-1% products.

“But it is not just the deposit-rich who are benefiting from cheaper rates – those borrowing at higher loan-to-values are also seeing rates fall, with even 95% LTV deals now to be had at sub-3%.’

Jeremy Leaf, north London estate agent and a former RICS residential agent, added: “These figures for the period just after the withdrawal of the full stamp duty holiday are perhaps better-than-expected although reflect what we have been seeing – that buyers were still keen to proceed with their purchases, even though they were saving less than they would have done before the end of June.

Discover our Residential Mortgage Broker services.

“The figures clearly illustrate how many people brought forward buying decisions to take advantage of the stamp duty holiday.

“The market is definitely calmer now but many are taking advantage of staycations to keep in touch with market activity, with listings slowly beginning to rise again as prospective sellers return from holiday.”

Clare Beardmore said: “It’s hard to predict with complete certainty what will happen to the housing market after the government’s stamp duty holiday finishes this month.

“Most expect the numbers of people looking to buy and sell a home will reduce, but that house prices will continue to grow steadily due to an overall lack of housing supply and continued interest from property investors and other groups, such as first-time buyers.

“What has become clear is that record demand for homes has significantly increased property values in many areas of the country, making it harder to step onto the ladder, or buy the same size home as this time last year for an equal amount of money.

“That being said, one of the best ways to manage the cost of buying or owning a home is by getting a great mortgage deal.

“Mortgage repayments are normally the biggest regular expense a person will have, so locking in a better rate could effectively mean giving yourself a pay rise, if it results in hundreds of pounds saved each month.

“Speaking with an independent adviser is a great place to start when on the hunt for a mortgage, as it will often mean accessing a much larger range of options and potentially finding a deal which is better suited to your individual financial needs.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

HMRC: Residential transactions up 9% in Q2

Residential property transactions in Q2 2021 were 9% higher than in Q1, and 175% higher than in Q2 2020, according to the HMRC Q2 Stamp Duty Statistics.

The HMRC data also found that non-residential property transactions in Q2 2021 were 12% higher than in Q1, and 79% higher than in Q2 2020.

Total Stamp Duty Land Tax (SDLT) receipts in Q2 2021 were 12% higher than in Q1 2021, and total SDLT receipts in Q2 2021 were 92% higher to those in Q2 2020.

Residential property receipts in Q2 2021 were 12% higher than Q1 2021, and 90% higher than Q2 2020 and non-residential property receipts in Q2 2021 were 11% higher than in Q1 2021.

The 2% surcharge on the purchase of properties by non-residents was introduced on 1 April, to date this has resulted in 2,700 transactions paying £19m.

HMRC said the increase in residential transactions in the last four quarters was impacted by the introduction of the SDLT holiday for residential properties and an ongoing strength in the housing market.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

Looking to First Time Buyers Relief, up to Q2 2020 there were 540,900 claims that benefited from that relief, and the total amount relieved by these claims was £1.2bn over the period.

An estimated 84,700 transactions were liable to higher rates for additional dwellings (HRAD) in Q2 2021, with the 3% element generating £485m in receipts, a decrease of 70% from the previous quarter, and a rise of 125% compared to Q2 2020.

Conor Murphy, chief executive at Smartr365, said: “The stamp duty holiday lit up what was an already heated property market and today’s encouraging findings reinforce just how instrumental this initiative has been in creating the ‘busiest H1 on record’.

“The stamp duty holiday has positioned the property market as a key driver in the UK’s economic recovery and thankfully enabled many in the industry to retain their jobs.

“Most remarkably, the break has created a golden opportunity for both first-time buyers and second-steppers to move onto or up the property ladder, when they otherwise would not have had the financial means to do so.

“However, with just eight weeks until the tax break draws to a close, the government should now plan how it will support buyers in its wake. Permanent reductions to stamp duty will help ensure homeownership remains an accessible venture and that the market retains its buoyancy come the end of September.

“It is crucial that this period of greater accessibility and heightened demand is not just a flash in the pan.”

Stuart Wilson added: “The stamp duty holiday has helped propel an already buoyant property market even further as the sector records one of its busiest periods ever.

“Today’s figures highlight the rush among prospective homeowners to meet the initial tax holiday deadline at the end of June.

“While much of the focus has been on the benefits of the stamp duty holiday for first-time buyers and second steppers, older borrowers have also been using this opportunity to find their forever home.

“We have seen the proportion of over-55s using equity release to fund property purchases triple from 5% to 15% since the outbreak of the pandemic.

Discover our Residential Mortgage Broker services.

“However, the clock is now ticking with just eight weeks to go before the tapered holiday ends.

“A buyer purchasing the average property used for equity release can stand to save £3,000, but with advisers, lenders and conveyances continuing to face delays, it’s vital to not only work closely together but also to manage client expectations.

“Advisers must also ensure the process is as smooth as possible by working with their clients to prepare all the documentation required from the outset, while as much as 20 working days or more can be saved when clients engage with a specialist equity release solicitor.”

Cloe Atkinson said: “Today’s figures show how the stamp duty holiday successfully boosted demand from buyers right up until the final deadline.

“The high levels of activity the housing market has been able to sustain since the market reopened in 2020, despite the difficulties imposed by the pandemic, show the success of this policy and are also testament to how adaptable and innovative the property industry can be.

“There is, however, still more work to be done. While the tax break boosted the number of house sales, a lot of the savings for buyers were swallowed up by soaring house prices.

“As the tax holiday comes to an end and prices continue to rise, it’s more important than ever that the industry to addresses issues around affordability and accessibility, particularly for those who have been financially impacted by the pandemic.

“Investing in the right technology now is going to be crucial to the future of the market.

“Innovation like open banking has the power to make the mortgage application process more accessible, especially for borrowers with more complex financial histories.

“At the same time innovation in this area will also allow for faster and more efficient lending decisions.

“The industry has come a long way since the market re-opened last year, it’s vital that it sustains this momentum and doesn’t settle for a return to the status quo.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Residential transactions up 219% annually in June

The provisional seasonally adjusted estimate of UK residential transactions in June 2021 was 198,240, 219.1% higher than June 2020, according to HM Revenue & Customs (HMRC).

On a monthly basis, this figure was up 74.1%.

The provisional seasonally adjusted estimate of UK non-residential transactions in June 2021 was 10,850, 58.7% higher than June 2020 and 6.8% higher than May 2021.

Looking to the provisional non-seasonally adjusted estimate of UK residential transactions, this was noted at 213,120, 216.1% higher than June 2020 and 108.5% higher than May 2021.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements

The provisional non-seasonally adjusted estimate of UK non-residential transactions in June 2021 is 11,610, 61.1% higher than June 2020 and 30.3% higher than May 2021.

Further to this, the provisional non-seasonally adjusted estimate for UK residential transactions in June 2021 of 213,120 was the highest monthly UK total since the introduction of these statistics in April 2005.

Tomer Aboody said: “Looking at the highest levels of transactions since 2005, when data was first captured, the second quarter has seen properties flying off the shelves as buyers pay premium prices due to the lack of supply.

“But with mortgage interest rates at record lows, and some at sub 1%, borrowers are realising this is the opportune moment to stretch themselves in order to buy their dream home.

“This trend is likely to continue for a while yet, while money remains cheap, resulting in prices rising further due to lack of supply.

“Will the Chancellor look at possibly reformatting stamp duty so that downsizers don’t have to pay it or face a significant reduction?

“This would have the desired result of more properties coming to market, keeping a lid on prices while further boosting the wider economy.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “As always, it is transactions rather than the more volatile prices which are a better measure of housing market health.

“These figures clearly illustrate the frenzied rush to the finishing line for buyers to take advantage before the stamp duty holiday drew to a close.

“However, activity has reduced since, particularly in London where the savings were greatest.

Discover our Residential Mortgage Broker services.

“Early signs are that sales will be down significantly but we have noticed nearly all of our transactions are continuing with very few renegotiations.

“This leads us to believe prices will not be markedly different over the next few months.”

Conor Murphy said: “The end of June brought closure to the first phase of the stamp duty holiday and one of the busiest periods ever witnessed by the property market.

“Today’s fantastic findings are testament to the success of the scheme in sparking further interest in an already busy market and positioning the industry as a key driver in the UK’s economic recovery.

“We have championed the stamp duty holiday as ‘the great equaliser’ since its introduction in July 2020 and will continue to do so long after its conclusion in two months’ time.

“The tax break has reduced the amount of upfront capital needed to get on the property ladder, made homeownership a more viable goal for thousands and provided a much-needed form of economic relief in a period where finances are increasingly strained.

“However, with brokers, conveyancers and lenders all juggling sky-high demand, it’s important that advisors manage client expectations and assess how mortgage tech can be used to streamline transactions before the holiday draws to an end in just 10 weeks’ time.

“Mortgage tech can act as an additional team member if used correctly.

“There’s no better time than today to see how features like one-click DIPs, task automation and digital ID verification can remove the legwork in your business, leaving you with more time to focus on what truly matters: providing clients with expert advice.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Residential transactions up 138% in year to May

The provisional seasonally adjusted estimate of UK residential transactions in May 2021 was 114,940, 138.2% higher than May 2020, according to HMRC.

However, this is 3.9% lower than April 2021.

The provisional seasonally adjusted estimate of UK non-residential transactions in May 2021 was 10,900, up 87.5% annually and 8.7% higher on a monthly basis.

Looking to the provisional non-seasonally adjusted estimate of UK residential transactions in May 2021, this figure was 103,100, up 123.4% year-on-year.

Meanwhile, this figure had fallen by 8.7% between April and May 2021.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

The provisional non-seasonally adjusted estimate of UK non-residential transactions in May 2021 was 9,560, 80.1% higher than May 2020 and 7.8% lower than April 2021.

The provisional non-seasonally adjusted estimate of 392,860 for UK residential transactions during Q1 of the 2021 calendar year is the highest Q1 total since the introduction of stamp duty statistics in their current format from 2005.

As well as this, it is the highest quarterly total since 2006 Q2, at 419,270.

Steve Seal said: “It’s encouraging to see that the number of property transactions has remained at a healthy level as the market continues to recover.

“House prices are now experiencing a substantial boom, with the stamp duty holiday and demand for remote-work-appropriate properties both helping to fuel the market’s rebound.

“Rising house prices have, however, been detrimental to first time buyers, pushing their homeownership aspirations even further out of reach.

“Many younger borrowers have also experienced a financial setback during the crisis, which has only compounded the problem.

Discover our Residential Mortgage Broker services.

“As a result, demand for specialist mortgages is expected to rise among this cohort when they consider the lending options available to them.

“The specialist market must prepare for this increase, and lenders and advisers will need to work together to capitalise on the opportunities coming their way.”

Guy Gittins added: “May continued the exceptional transaction volume we have seen throughout the entire year with three times more buyers than usual.

“Viewings have been at a five-year high for the past three months. This has led to competitive bidding but with supply meeting demand, large price increases have been kept at bay.”

Gareth Lewis said: “The busiest May since 2007 is partly down to the lack of transactions last year, thanks to the pandemic, and the stimulus that the stamp duty holiday is giving the market.

“It is too early to say whether sentiment is such that we are now on a continuous upwards trend or it is a blip.

“However, on the positive side, people are looking to transact and are buying property. Even though there are still numerous people on furlough and many sectors are not working as they should, there is still confidence there.

“Until we get out of the other side of all this, and don’t have the stamp duty holiday and other stimulus, we won’t know exactly where we sit. Only time will tell if the market falls off a cliff.

“At some point, the government needs to think longer term and address issues such as the lack of affordable housing.

“This has been pushed down the line by COVID and we are not likely to see anything until next year at the earliest.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

HMRC: April resi transactions highest for that month since 2007

HMRC’s provisional non-seasonally adjusted estimate for UK residential transactions in April 2021 was 111,260, the highest total in April since 2007, when transactions were 126,450.
However, this is a drop from the March 2021 figure of 190,980.

Provisional non-seasonally adjusted UK residential transactions in April 2021 increased 197.8% year-on-year, but a substantial amount of this difference is due to the impacts of the COVID-19 pandemic on the April 2020 statistics.

In addition, the non-seasonally adjusted estimate of 392,170 for UK residential transactions during quarter one of 2021 was the highest Q1 total since the introduction of stamp duty statistics in their current format in 2005, and the highest quarterly total since Q2 2006 (419,270).

Due to the pandemic, quarter two of 2020 was the lowest quarterly total for UK residential transactions since Q1 2009.

Provisional estimates of UK residential transactions in April 2021 have shown an impact from the temporarily increased nil rate bands for stamp duty and and Land Transaction Tax (LTT).

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Following year-on-year decreases in April and May 2020 of around 50%, caused by the pandemic, non-seasonally adjusted UK residential transactions have gradually increased, peaking in March 2021 with a provisional estimate of 173,410.

For non-residential transactions, non-seasonally figures in April 2021 increased 94.4% year-on-year, but again this will largely be due to the effects of the pandemic on last year’s data.

Provisional estimates of UK non-residential transactions in April 2021, 10,520 non-seasonally adjusted and 10,160 seasonally adjusted, are similar to levels reported during April in recent years, excluding 2020.

Following yearly decreases in April and May 2020 of around 45% caused by economic effects around the pandemic, non-residential transactions have followed a generally increasing trend during subsequent months.

Joshua Elash said: “Transactions are significantly down from March due to a large number of purchases completing that month in anticipation of the stamp duty holiday expiring.

“It evidences how significant an impact the scheme is having on buyer appetite and confidence.

“April was always going to be softer in terms of number of transactions.

“The annual rebound has, however, been stunning.

“A year ago, the first lockdown bit into the property market hard, and this comeback is nothing short of astonishing.

“All in all, the data continues to support a growing argument that stamp duty should be abolished completely so as to continue to encourage transactions, upward mobility, and to support the economy.”

Mark Harris said: “April’s dip in transactions compared with March is likely to be at least partly due to the anticipated end of the stamp duty holiday, before its extension was announced, which resulted in buyers taking their foot off the gas to get deals done.

“Now that the holiday has been extended, activity has picked up again.

“Compared with April last year, when the housing market was closed to business thanks to the pandemic, there has been a massive 179.5% jump in transactions.

Discover our Residential Mortgage Broker services.

“That reflects the grinding to a halt of the market, as well as the surge in demand created by COVID, with more people bringing forward moves to the country and a growing desire for more space, both inside and out.

“On the lending front, lenders have plenty of cash and are keen to lend.

“There are some very competitive products, and with Nationwide returning to 95% LTV mortgages at lower rates than its competitors, it is a good time to borrow.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Although these figures reflect many sales agreed several months ago, they show a reduction in activity as many buyers did not expect to still take advantage of the stamp duty holiday.

“However, activity has picked up strongly since the deadline was extended, allowing many to continue where they left off, as well as encourage new entrants to the market.

“Transactions are always a better measure of housing market strength than prices which tend to fluctuate.

“On the ground, supply is still a problem even though listings have improved as rollout of the second jab in particular is encouraging sellers to make their properties available.

“It is not only some sellers who are trying to profit from the home buying frenzy but certain solicitors are charging exorbitant fees to take on work, whereas others are working evenings and weekends to make sure they get over the line in time.”

By Jessica Bird

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Residential transactions show full steam ahead for housing market

The seasonally adjusted estimate of UK residential transactions in March 2021 was 190,980, 102.3% higher than March 2020, according to the latest HMRC Property Transaction data.

On a monthly basis, the figure rose by 32.2%.

The seasonally adjusted estimate of UK non-residential transactions in March 2021 was 12,530, up 53% year-on-year and 24.5% on February.

The HMRC data found that the non-seasonally adjusted estimate of UK residential transactions in March 2021 was 180,690, 107.9% higher than March 2020 and 49.6% higher than February 2021.

For UK non-residential transactions in March 2021, HMRC found the non-seasonally adjusted estimated was 14,160, 59.2% higher than March 2020 and 61.6% higher than February 2021.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Dave Harris, chief executive of more2life, said: “Today’s findings demonstrate the resilience of the UK housing market.

“Some of the activity in March will no doubt have been fuelled by the ‘race for space’ as homebuyers increasingly prioritise home offices and gardens over the convenience of access to the city centre, but the Chancellor’s extension of the stamp duty holiday will have fuelled buyer appetite as well.

“The reduction in stamp duty has also prompted older borrowers to release the equity in their homes to move to a new house or to purchase a second property.

“At more2life, we have seen the proportion of over-55s using equity release to fund property purchases triple from 5% to 15% in recent months, showing just how essential the Chancellor’s tax break has been in funding people’s ambitions and lifestyle changes during the pandemic.

“We expect this trend to continue in the months running up to the end of the holiday and encourage equity release lenders and advisers to work together when processing cases in order to meet growing consumer demand as efficiently as possible.”

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, added: “These figures show that it’s still full steam ahead for brokers and the property market.

“It’s clear that the extension of the stamp duty holiday has added fuel to keep the train moving in March, and it’s on track for a great April too with plenty of demand across the board.

“This of course means that brokers have been, and will be, very busy supporting their clients, so it’s a good idea to look for ways to stay on top of things.

“Our web chat tool, for example, is a great way for brokers to get answers to policy queries fast – our team can usually respond within a minute.”

Discover our Residential Mortgage Broker services.

Cloe Atkinson, managing director at Mortgage Engine, said: “March’s data shows there’s still a healthy level of activity in the market, reflecting the high levels of demand from buyers, boosted by the extension of the stamp duty holiday.

“The figures are further proof that the housing market has adapted well to operating efficiently during the pandemic.

“Brokers, lenders, and borrowers have learned how to successfully navigate the difficult conditions caused by lockdown restrictions.

“Tech-driven solutions have been a vital part of this success, allowing many parts of the housebuying process to be completed entirely remotely.

“As pandemic restrictions in England begin to ease, it’s vital that the industry doesn’t lose sight of the benefits these tech solutions can bring.

“While many people are dreaming about a return to the normality of life pre-pandemic, the mortgage industry should be more ambitious.

“As the post-pandemic recovery begins, the industry should focus on building upon the tech adoption of the last year and innovating further to ultimately provide better outcomes for all involved.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

HMRC: Highest number of February residential transactions since 2007

The provisional seasonally adjusted estimate of UK residential transactions in February 2021 was 147,050, up 48.5% annually, according to the latest HMRC Property Transaction data.

On a monthly basis the estimate is also up 23%, and these figures are the highest number for the month of February since 2007.

Looking to the estimate of UK non-residential transactions in February 2021, this was up 10.2% year-on-year to 10,630, and 25.8% higher than January 2021.

The non-seasonally adjusted estimate of UK residential transactions in February 2021 was 122,840, 48.3% higher than February 2020 and 26.4% higher than January 2021.

Non-seasonally adjusted non-residential transactions in February 2021 was 9,230, 9.9% higher annually and 27.7% higher than the month prior.

Guy Gittins, chief executive of Chestertons, added: “While there is no doubt that there are a lot of people very keen to move home, many didn’t feel comfortable starting the process until they had some idea of when the country might be out of lockdown.

“Once this was provided, we noticed an immediate uplift in new buyers registering with us, and the subsequent announcement confirming the extension of the stamp duty holiday only added to this.

“As the country emerges from lockdown, we expect moving home will be many people’s top priority; just as we saw after the first lockdown; and are therefore anticipating a very busy spring and summer market.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

“We currently have around 70% more properties on the market for sale than we did last year.

“This is good news for buyers as it means that substantial price increases are relatively unlikely for the time being and that there are generally more homes to choose from.”

David Whittaker, chief executive at Keystone Property Finance, added: “Putting these figures into context, today’s HMRC data looks at property transactions before the stamp duty land tax holiday was extended in the Chancellor’s Budget this March.

“As was speculated at the time, today’s figures confirm many purchases rushed through in February as buyers and sellers took advantage of the tax break.

“The stamp duty holiday presents an excellent opportunity for landlords looking to increase their portfolio and cash in on the tax break, however there are significant challenges to navigate as well. 2020 was a challenging year for the buy-to-let market.

“We saw a raft of regulatory changes in areas from energy rating requirements to mortgage payment tax relief and unprecedented market conditions of surging demand paired with limited capacity while working from home.

“These factors have created an unfamiliar market for even experienced landlords.

Discover our Residential Mortgage Broker services.

“In these times, it is even more essential that borrowers are seeking broker support and guidance to help them secure the best product available.”

Tomer Aboody, director of property lender MT Finance, also reacted to these figures: “With the strongest housing market in more than a decade, both home buyers and investors are taking advantage of historically low borrowing rates.”These favour both those buying a property to live in and those seeking rental assets for yield, significantly boosting the number of transactions.

“With the extension of the stamp duty break, further buyers have decided that now is the time to buy with a potential saving of up to £15,000 to tempt them.

“This saving, along with high loan-to-values and cheaper mortgages, is making this a sellers’ market, with buyers waiting in the wings to pounce.

“Many are prepared to pay higher prices than the past few years so as not to miss out, which is pushing values even higher.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Residential transactions remain high as SDLT holiday deadline is approaching

The number of UK residential transactions, on a seasonally adjusted basis, rose by 24.1% between January 2020 and January 2021, according to the latest property transactions data by HMRC.

This annual rise comes as the stamp duty holiday deadline fast approaches on the 31 March.

Despite the annual rise, on a monthly basis the number of residential transactions dropped by 2.4%.

Looking to the number of non-residential transactions in the UK during January, this figure fell 8.2% year-on-year to 8,980.

In addition, between December 2020 and January 2021, the number of non-residential transactions declined by 3.6%.

The provisional non-seasonally adjusted estimate of UK residential transactions in January 2021 was 98,830, 17.9% higher than January 2020 and 25.2% lower than December 2020.

Furthermore, the non-seasonally adjusted estimate of UK non-residential transactions in January 2021 was 7,680, 14.6% lower than January 2020.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

The data also shows that the level non-residential transactions was 28.0% lower than December 2020.

Mike Scott, chief analyst at Yopa, said: “New figures from HMRC show that the number of home purchases completed in January was still very high, as buyers rushed to beat the 31 March stamp duty deadline.

“We expect that the number of purchases will remain very high until March, and then drop off for a few months before returning to normal.

“The year as a whole is likely to see a higher number of purchases than in recent years, perhaps as high as 1.3 million.

“The housing market has remained open during the recent and current lockdowns, but many people are still waiting for life to return closer to normal before they make their next move.

“After a brief slowdown in the second quarter after the stamp duty holiday ends, we anticipate a very active housing market in the second half of this year.”

David Whittaker, chief executive of Keystone Property Finance, added: “Today’s figures suggest that home buyers who are unlikely to make the stamp duty holiday deadline are taking a ‘wait and see’ approach to purchases, delaying applications until the Chancellor providers greater clarity over the future of the tax holiday.

“However, despite the uncertainty, second properties are making up a significant proportion of the continued rising demand.

“Data from Hamptons International reveals second home sales increased by 58% in January 2021 compared to the same month last year.

“This follows a period of buoyancy in the buy-to-let market as landlords look to expand their portfolios, while taking advantage of an increasing number of buy-to-let products on the market.

Discover our Residential Mortgage Broker services.

“However, being a landlord brings with it a series of challenges, not least the recent and upcoming regulatory and tax changes.

“Qualified advice from mortgage brokers is crucial in helping landlords to navigate the market and access the right mortgage for their unique circumstances.”

Nick Barnes, head of research at Chestertons, said: “Following a record December, the sales market has maintained momentum throughout January 2021.

“Compared to January last year, Chestertons registered 9% more instructions, indicating that sellers remain keen to move home.

“This is further highlighted by a 47% year-on-year increase in properties currently on the market.

“Equally, we have agreed 27% more sales, largely driven by house hunters rushing to meet the stamp duty holiday deadline but also possibly reflecting a desire to beat any potential shutting down of the housing market as proposed by the Labour party.

“In spite of lockdown restrictions, there are still plenty of households who are keen to move, which is further boosted by the roll-out of the vaccine.

“Boris Johnson’s announcement of the slow easing of lockdown restrictions might bring a new spark to the housing market as people are eager to return to some form of normality.

“So far in February, Chestertons has seen a 73% increase in sales compared to the same period in February 2020.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.