Tag Archives: house
Official figures confirm buying frenzy in UK in run up to stamp duty change
Official figures from HMRC confirm that there was a large increase in property sales in the UK in March 2016 which was associated with stamp duty change. House sales were 77% higher than March 2015 and 75% up month on month and the HMRC report states this must be directly linked to a rush to buy ahead of the new 3% stamp duty charge for additional homes. There has been plenty of anecdotal evidence that buy to let investors were rushing to beat the 01 April deadline and this is now confirmed. However it is likely that sales in April will fall considerably as a result of the frenzy. Even the seasonally adjusted estimate shows that the number of residential property transactions increased by 41.5% between February 2016 and March 2016 and increased 69.7% compared to March 2015. ‘The large increase in transactions for March 2016 is likely to be associated with the introduction of the higher rates on additional properties in April 2016,’ the HMRC report says. ‘Additional non-tax factors may have played a role as well, for example the Bank of England's plans to curb buy to let mortgages resulting in a rush to purchase,’ it adds. The HMRC figures also shows that for March 2016 the number of non-adjusted residential transactions was about 74.8% higher compared with February 2016. Lucian Cook, Savills head of residential research, pointed out that even on a seasonally adjusted basis volumes were up 40% on February 2016 against a backdrop of economic uncertainty, the forthcoming referendum on the future of the UK in the European Union referendum and no loosening of mortgage lending criteria. He also pointed out that the latest data from the Council of Mortgage Lenders shows mortgage lending was 43% higher in March compared to February, and 59% higher than March 2015. ‘This suggests that while borrowing to support this uplift in sales volumes has been significant, there has also been a notable weighting towards cash buyers. All these figures confirm a frenzy of buying activity before the 01 April introduction of the 3% stamp duty surcharge for additional homes purchases,’ Cook explained. ‘It underscores the significant distorting effect that stamp duty changes can have on the housing market. This is clearly a one off event and such volumes are unsustainable against a backdrop of economic uncertainty and the prospect of an increased regulatory environment for buy to let borrowing,’ he added. ‘We’d expect a significant fall in transaction levels in the second quarter of the year to offset the March activity and the stamp duty surcharge to act as a longer term drag on housing transactions,’ he concluded. Doug Crawford, chief executive officer of My Home Move, said that March was the busiest month the business has ever seen with a record number of transactions. The busiest ever day for completions was 31 March, reaching a total of 1,120 in the single day. ‘The new stamp… Continue reading
Property prices in Spain rose in February as recovery takes hold
The prices of homes in Spain increased by 0.6% in February year on year, taking average values to €1,233 per square meter, according to the latest data from the General Council of Notaires. Prices are strongest in the single family home sector with growth of 3.8% year on year while the price of apartments fell slightly by 0.2% compared to February 2015. The average price for single family homes is now €1,007 per square meter, for second hand apartments it is €1,350, up 0.6%, and for new apartments it is €1,619 per square meter, a rise of 0.3%. At the same time sales are rising steadily, up 22.9% year on year with the growth being led by apartments with transactions in this sector up by 25.9%, the data also shows. Sales of single family homes also registered a significant increase year on year with growth of 22.6% but new homes are not as popular with transactions down by 5.1%. The report from the Notaires states that in general terms the figures reflect an underlying trend of recovery. The recovery is also being reported by estate agents. Barcelona based Lucas Fox International said it recorded a 33% increase in sales in 2015 and much of the growth is coming from Spanish buyers rather than from those from overseas. Property sales to Spanish buyers were up by 86% year on year, according to the company’s latest market report and it said this is a sign that the Spanish property recovery is well underway. International buyers, however, continue to dominate high end sales. Some 17% of prime market buyers in Barcelona purchasing property above €950,000 were to national clients compared to 11% the previous year, the majority of whom were purchasing primary residences. ‘The increased market activity by local buyers was the standout trend in 2015. Spanish buyers have been active predominantly at mid end of the market, attracted by property prices at an eight year low, a recovering economy and increased lending from Spanish banks,’ said Tom Maidment, partner at Lucas Fox. ‘For several years the market has been dominated by international buyers and whilst foreign investors still account for the majority of our sales, the number of local buyers is clearly on the rise and we expect this trend to continue apace throughout 2016,’ he added. Sales to the British were also up by 50% in Barcelona, and in Lucas Fox’s Ibiza office, UK buyers accounted for more than two thirds of home sales, primarily due to the strong Pound against the Euro during 2015. The Barcelona office also saw a significant rise in Dutch and US buyers during 2015. The number of Russian buyers has dropped substantially, however, and are being replaced by buyers from the Middle East. Sales to the Spanish were also particularly strong in Valencia where transactions to local buyers more than doubled. There were also significant increases in Maresme, the coastal area to the North of Barcelona, and… Continue reading
The growth of London house prices has slowed down, new data suggests
London house price growth has slowed in the first quarter of 2016 and is now nearly three times lower than it was in the last quarter of 2015, new research shows. The London market recorded price growth of 1.2% in the first three months of the year while nearby regions have seen higher price growth, according to the latest UK House Market report from the Lancaster University Management School. For example, the Outer Metropolitan area has seen price growth of 3.1%, Outer South East 2.5% and East Anglia 4.1%, the data from the report shows. The report says that this is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market. It suggests that the slowing growth in the London property market has coincided with two factors, possibly working in opposite directions: an increase in the uncertainty of global economic conditions, especially in the East, and the run-up to the introduction on the 01 of April of extra 3% stamp duty on additional property purchases. The Observatory has been set up to monitor for signs of exuberance in prices in the UK regions, and releases its analysis each quarter alongside the house price data. Continue reading
