Residential Sales Up By More Than 20% In April Year On Year

June, 2017

During the month of April 2017 the UK saw a total of 99,910 residential transactions resulting in a huge 20.3% rise in transactions when compared to the same time last year.

In addition to residential transactions almost breaking the 100,000 mark, the month of April also saw 9,980 non-residential sales according to recent data released by HMRC.

It was also revealed in the latest information published by HMRC, that overall transactions are down 3.2% in comparison to the previous month, however, the current number of transactions are still seen as strong progress for the UK property market.

This large leap in transactions could be attributed to the introduction of extra stamp duty land tax in April 2016, which certainly had a dampening effect on the market at the time. While some may have anticipated a further slowdown in transactions in April of this year due to the tax changes for landlords, recent statistics show the resilience of the market.

Former RICS Residential Chairman, Jeremy Leaf, spoke on the statistics “At first glance one might think these figures are hugely disappointing but when you consider what was happening this time last year and what has happened to property transactions in the past few months, they represent steady progress for the housing market.

“Transaction numbers are really key to what is going on in the market - how many people are actually getting on with the business of moving - and these numbers suggest some resilience.”

When looking at recent years, it is not entirely uncommon to see a slight drop in activity between the months of March and April, with some statistics indicating that the lower number of transactions is a seasonal trend.

Head of Lending for Mortgage Advice Bureau, Brian Murphy, suggests that the 3.2% fall from month to month is business as usual, he said “One could suggest that the decrease in transactions between March 2017 and April 2017 is normal, and in line with usual seasonal expectations.”

“Overall, transaction levels to date in 2017 are up by 5.5% on the same period in 2015. Reviewing previous data, we can also see that there was also a decrease in transactions between March and April in 2015. Buy-to-let anomaly of 2016 aside, there was a drop off in transactions between March and April last year too.”

With the upcoming snap election and Brexit negotiations still to come, similar activity over the coming months would certainly come as no surprise, however, some experts believe that times of economic uncertainty bring opportunity and potential buyers should assess their options.

Stephen Wasserman, MD at West One Loans, believes the property sector will always ‘bounce back’ and that borrowers should educate themselves on all the options available to them. Wasserman commented “Nevertheless, we’re confident the sector will bounce back. Although the market is resilient, during times of prolonged economic uncertainty it is important that borrowers are aware of the range of financing available. Flexible borrowing options, such as bridging loans, can help to speed up the transaction, enabling buyers to move faster and capitalise on opportunities in this uncertain environment”

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