Number of property transactions up 20%
April has seen property transactions in the United Kingdom fall by as much as 3.2%, but despite this dip, there has been a rise of around 20.3% when compared to the results of April 2016, according to HMRC. The year-on-year increase in transactions has been partnered with the introduction of increased tax rates on additional properties in April 2016. This meant that ‘direct comparisons should be avoided,” according to HMRC.
According to the latest figures that have been obtained, residential property transactions for the month of April stood at around 99,910. 9,980 of these were non-residential transactions. Jeremy Duncombe, the Legal and General Mortgage Club director suggested that: “It is not surprising to see property transactions return to their usual levels this month. March’s figures may have shown a fall in transactions, but it’s important to bear in mind that this data was largely skewed by last year’s buy-to-let rush ahead of the April Stamp Duty rise.”
Stephen Wasserman who is the managing director of West One Loans suggested that: “The property market will take a while to fully recover from the jitters caused by stamp duty hikes and economic uncertainty. On top of this, the result of the upcoming General Election is likely to have an impact over the coming months. 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.”
The number of non-adjusted residential transactions was 12.8% higher in April 2017 than April 2016. This trend looks to carry on over the year and the percentages look to increase.