Tag Archives: real estate
Conveyancing activity in UK saw ups and downs in second quarter of 2016
Conveyancing activity in the UK residential housing market increased in the second quarter of 2016 with changes to stamp duty pushing up transactions by 24% year on year, the latest data shows. Sales jumped from 230,430 to 286,425 as completions were registered following the rush to beat the Stamp Duty Land Tax (SDLT) changes for buy to let properties and second homes in April 2016, according to the latest edition of the Conveyancing Market Tracker from Search Acumen, the search provider. Completions recorded in the second quarter of 2016 were some 30% higher than two years ago and 59% higher than three years previously and compared with the first quarter of 2016 the three months preceding the SDLT reform there was a rise of 4% as conveyancers dealt with the reverberations across the housing market and the rush of transactions were logged as completed by Land Registry. The tracker report, which uses Land Registry data to examine competitive pressures in the conveyancing market, shows the top five firms led the way in terms of growth compared to the rest of the market, with completed activity rising 17% over the quarter and 41% over the year to reach an average of 3,523 transactions per firm over the three month period. However, outside the top five, the most significant quarterly growth was seen among those firms ranked 501 or lower. In the second quarter their average volume of transactions rose by 5% from the previous quarter. Year on year, those firms ranked 501 to 1,000 experienced 23% growth while those outside the top 1,000 recorded 19% growth. A combination of the SDLT aftershock and pre-Brexit activity meant that conveyancers experienced a rollercoaster ride from month to month during the second quarter. April saw the largest number of businesses responsible for completed transactions at Land Registry in any month since September 2014. The total of 4,374 was 4% higher than a year earlier, when 4,201 firms were active, and suggests the stamp duty rush brought more occasional players back to the market. Volumes of completed conveyancing transactions were also at their highest in April since monthly records began five years earlier in April 2011. Over the month, activity jumped 26% to 114,425 in April from 90,476 in March. Despite an inevitable slowdown the following month, both May and June also saw year on year rises of 14% with firms completing 81,583 and 90,477 transactions respectively, as activity picked up again despite the uncertainty ahead of the UK’s referendum on its EU membership. ‘Few sectors have been left untouched by the tumultuous events of the past few months, and the impact of the EU referendum on the political and economic landscape. Our analysis shows the conveyancing industry has been tried and tested in recent months, and the pressure shows no sign of easing as our country begins to work out what… Continue reading
Demand for rental properties in UK down slightly in July but no marked Brexit effect
The number of rental properties on letting agents’ books in the UK is at its highest level this year so far as demand for properties fell marginally in July, according to the latest research. But the private rental sector market is in positive shape following the decision in June to leave the European Union with the majority of agents reporting no change to rent prices. The July rental sector report from the Association of Residential Letting Agents (ARLA) shows that there were 184 rental properties on agents’ books, up 5% from the previous month. However, year on year supply is down as there were 189 properties per agent in July 2015, some 3% higher than July this year. Demand from prospective tenants for rental accommodation fell slightly, from 37 house hunters per branch in June, to 36 in July. Following the Brexit vote some 71% of agents witnessed no change in rents and 62% saw no movement in supply while 61% recorded no change in demand. As in June, last month 38% of letting agents saw no sign of a market wobble following Brexit. Where there is uncertainty though, it comes from those looking to let properties, with 44% of agents reporting signs of uncertainty from landlords ‘Despite reports that the housing market is spiralling out of control post-Brexit, our results paint a very different picture, and indicate that the future is bright for the rental market,’ said David Cox, ARLA managing director. ‘Supply is up, as we’d expect at this time of year, and the number of tenants experiencing rent hikes hasn’t changed in three months. While we obviously need new houses to balance the growing gap between supply and demand, what’s positive is that the situation isn’t worsening as a direct result of June’s Brexit result,’ he added. Continue reading
More UK home owners remortgaged in July due to falling rates
Home owners who remortgaged their properties in July lost no time in taking advantage of falling mortgage rates following the UK’s decision to exit the European Union (EU), a new report shows. Some 63% of remortgagers lowered their mortgage rates last month, up by 7% from May and 43% acted to reduce monthly payments as cheaper deals appeared on the market in the wake of the Brexit vote, according to data from LMS. With the exception of two-year variable products at 75% loan to value (LTV), Bank of England data shows average mortgage rates were lower across the board in July than was the case in May before the EU referendum took place with many falling to record lows. The rate cuts meant that more home owners who remortgaged to reduce their payments enjoyed substantial savings. Just 28% of those who took this course of action in May saved £200 or more each month from their new deal. In comparison, 35% who remortgaged to reduce their payments in July reported a monthly saving of £200 or more. The report says that the appetite for securing lower rates and reducing monthly payments in July came despite growing speculation of a base rate cut from the Bank of England, which ultimately occurred in August. For the first time since tracking began in December 2014, LMS data shows that there were higher expectations of rates falling than rising in July. Among the 13% of remortgagers who expected rates would change in July 59% expected rates would fall compared with just 18% who felt this way in May and 29% in June, when the EU vote took place. Despite widespread speculation over the economic impact of the UK’s vote to leave, the July data from LMS also shows little sign of a drop in consumer confidence in the remortgage market. The percentage of remortgagers increasing the size of their loan rose from 26% in May to 28% in July, while the percentage increasing their loan by more than £10,000 was unchanged from May at 19%. Similarly, the percentage remortgaging to pay for home improvements increased slightly from 19% in May to 21% in July, while there was a two percentage point increase in those remortgaging to pay off other debts from 7% to 9%, potentially in a bid to stabilise their finances in the face of an uncertain economic environment. ‘The aftermath of the vote to leave the European Union has seen many mortgage rates tumble to record lows, a fact that has not been lost by home owners as many seek to take advantage of low rates. July’s figures show many people were keen to press ahead with plans to remortgage, regardless of growing speculation that a base rate cut might be on the cards,’ said Andy Knee, chief executive of LMS. ‘The Bank of England’s reduction of the 0.5% base rate to 0.25%… Continue reading
