HMRC has revealed that residential property transactions have increased by 5.5% between January 2016 and February 2016. The seasonally adjusted figure is 16.1% higher compared with the same month last year. The number of non-residential property transactions has increased by 10.9% between January and February 2016, which is 12.7% higher compared with the same time last year.
Greg Bryce, Managing Director at SearchFlow, comments: “The housing market continues to remain buoyant and it is showing a significant uplift from this time last year. Whilst transaction levels still haven’t reached the levels prior to the housing market slump and credit crunch, we are witnessing the highest transaction levels in over eight years. Over the last year, transaction levels have risen steadily and we have seen a significant spike recently due to the widely reported rush to complete property purchases prior to April, ahead of the introduction of the extra 3% stamp duty charge for additional homes.
“We are then likely to see the transaction level dip as any uncertainty surrounding a potential Brexit gains momentum. However, with the economy strong, employment level high, interest rates low and the economic and housing policies unlikely to change very much; once the dust settles, activity levels will pick up again, regardless of the outcome. Pent up demand and a short supply of housing will continue to drive the market.”
Commenting on the non-residential transaction level rises, Greg Bryce continues: “The commercial market has mirrored the residential market and there has been a rising trend since September 2013. Following the announcement in the budget last week, much like we saw with the stamp duty changes for the residential market in 2014, abolishing the slab tax system will help boost a very significant portion of the market. All but 10% of the market is set to benefit, with only properties costing more than £1.05m being hit by a stamp duty increase. However, the impact at the top end of the market is likely to be realised also, with concern about a slow-down and dampening of regional growth voiced by many.”
This article was submitted to be published by SearchFlow as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.