Wednesday, 22 November 2017

House sales climb in signs of resilient market

House sales climbed by 1.7 per cent in October to reach their highest level since March 2016, according to HMRC data. 

The seasonally adjusted figure for the month shows residential transactions rose to 105,260 – up from 103,460 in September and a 9.2 per cent climb year-on-year.
Long-term data shows a steady rise in the number of sales since a peak of almost 171,000 in March 2016, as buyers rushed to head off the 3 per cent stamp duty surcharge on additional property purchases the following month.
The March 2016 surge was followed by a dramatic drop off in transactions, but the current data shows the market has almost recovered to its previous level.
Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors residential chairman, said the figures “bear out what we’ve seen in other recent reports that the market is proving much more resilient than we might have expected”. 
He added: “However, the government could do much more to promote transactional activity which would benefit the whole economy.
“We are looking to the Budget to promote more supply to support additional transactions, not just push up demand and prices as some previous policy decisions have done.”
Shaun Church, director at mortgage broker Private Finance, commented: “Given the current political and economic uncertainty, it’s not surprising that the residential market is coasting rather than racing to the finish line of 2017. 
“High demand for housing and low mortgage rates will continue support activity in the long-term, but for a markedly improved performance next year issues surrounding property supply and the stamp duty system must be addressed. The industry will be hopeful that tomorrow’s Budget unveils decisive action on these two fronts.” https://www.ftadviser.com/mortgages/2017/11/21/house-sales-climb-in-signs-of-resilient-market/

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