January 25, 2017
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| The Property Investor Centre |
Provisional non-seasonally adjusted transaction data from the taxman shows there were 1,235,120 property sales in 2016, fractionally up from 1,229,58 in 2015.
In comparison, the number of transactions increased by 0.88% between 2014 and 2015.
On a monthly basis for December, transactions were at 109,100, up 5.1% on November and 4% lower year-on-year.
David Brown, chief executive of Marsh & Parsons, said: “Despite a number of obstacles in 2016, the total number of transactions rose slightly compared to 2015, to the highest since the financial crash.
“The resilience demonstrated in the face of a vote to leave the EU and marked changes to Stamp Duty – which significantly impacted sales of second homes and the buy-to-let market – is not to be scoffed at.*
“We’ve already witnessed an encouraging stream of interest from buyers across London during the start of 2017, particularly international buyers who have been buoyed by the falling value of the pound and continue to view London property as a solid investment.”
Shaun Church, director at mortgage broker Private Finance, said: “Reflecting on the second half of the year, the property market ended 2016 on more of a whimper than a bang, with transactions remaining largely flat and falling year-on-year.
“However, 2016 has been a very unusual stage in the life of the UK housing market with Stamp Duty changes resetting the dial for investors and wider uncertainty caused by the EU referendum.
“Given these challenges, the market has proven to be remarkably resilient and end-of-year sales meant December brought the largest monthly transaction total of the new Stamp Duty era.
“Although we have seen a degree of recovery since April’s reform, overall activity levels do not paint the full picture of pressures facing would-be homebuyers. Low supply continues to pose an affordability challenge for buyers at the lower end of the market, and there has been a continued slowdown in sales of higher value properties.
“The Stamp Duty change was originally designed to boost tax revenues, but with fewer high value transactions taking place, this could ultimately prove to be counter-productive.
“However, the good news for potential buyers is that Stamp Duty changes have suppressed house price growth at the upper end of the market, which has the potential to offset some of the additional costs they would otherwise face from a higher tax burden.”
Doug Crawford, chief executive of conveyancing firm My Home Move, said: “In the long term, demand for both rented and owner-occupied accommodation will support prices and sales volumes.
“There will undoubtedly be challenges for the market over the next 12 months, with the triggering of Article 50 and changes to landlords’ tax relief looming on the horizon.
“However, the property market has shown it is more than strong enough to overcome these obstacles.”
http://www.propertyindustryeye.com/transaction-growth-slowed-in-2016-hmrc/
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