residential transactions

Residential property transactions grew by 15.3% on a monthly basis in February 2022, official government figures show.

In total, on a provisional and non-seasonally adjusted basis, there were 96,250 transactions of this type, which is 20.6% lower than recorded in February 2021.

However, as Dashly founder Ross Boyd puts is: “Comparisons between February this year and last are like comparing apples with pears given the impact the stamp duty holiday had on transaction levels.”

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The figures also show that on a non-adjusted estimate, there were 9,860 non-residential transactions in February, which was 17.4% more than in January and 10.2% higher on the year.

Seasonally-adjusted, the report counts 112,260 residential transactions – a 4.4% improvement on January and 20.8% lower than seen in February 2021, and 11,020 non-residential transactions – 9.5% up on a monthly basis and 8% up on a yearly basis.

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Mark Harris comments: “Some heat has come out of the purchase market compared with last year but the remortgaging market is picking up as borrowers attempt to lock into low mortgage rates before they disappear.

“Increasing living costs, rising mortgage rates and higher taxes make for an unwelcome triple whammy which may put the brakes on the housing market unless the chancellor comes up with a strategy to soften the blow in his spring statement.’

By Gary Adams

Source: Mortgage Finance Gazette

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Residential property transactions in July 2021 were 4.2% higher, at 73,740, than in July 2020, according to HM Revenue & Customs (HMRC).

However, HMRC found that this figure was 62.8% lower than in June 2021.

The provisional seasonally adjusted estimate of UK non-residential transactions in July 2021 was 9,760, 21% higher than July 2020 and 5.9% lower than June 2021.

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Looking to the provisional non-seasonally adjusted estimate of UK residential transactions in July 2021, this figure was noted at 82,110, 1.8% higher than July 2020 and 61.5% lower than June 2021.

The HMRC provisional non-seasonally adjusted estimate of UK non-residential transactions in July 2021 was 9,730, 15.2% higher than July 2020 and 12.2% lower than June 2021.

Mark Harris said: “The stamp duty holiday focused the minds of many buyers who were already keen to move and improve their living conditions by acquiring more space both inside and out.

“Cheap mortgages have also played a significant part in the uptick in transactions and will continue to do so going forwards, even as the stamp duty holiday tapers off.

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“Mortgage pricing continues to trend downwards, with a growing number of sub-1% products.

“But it is not just the deposit-rich who are benefiting from cheaper rates – those borrowing at higher loan-to-values are also seeing rates fall, with even 95% LTV deals now to be had at sub-3%.’

Jeremy Leaf, north London estate agent and a former RICS residential agent, added: “These figures for the period just after the withdrawal of the full stamp duty holiday are perhaps better-than-expected although reflect what we have been seeing – that buyers were still keen to proceed with their purchases, even though they were saving less than they would have done before the end of June.

“The figures clearly illustrate how many people brought forward buying decisions to take advantage of the stamp duty holiday.

“The market is definitely calmer now but many are taking advantage of staycations to keep in touch with market activity, with listings slowly beginning to rise again as prospective sellers return from holiday.”

Clare Beardmore said: “It’s hard to predict with complete certainty what will happen to the housing market after the government’s stamp duty holiday finishes this month.

“Most expect the numbers of people looking to buy and sell a home will reduce, but that house prices will continue to grow steadily due to an overall lack of housing supply and continued interest from property investors and other groups, such as first-time buyers.

“What has become clear is that record demand for homes has significantly increased property values in many areas of the country, making it harder to step onto the ladder, or buy the same size home as this time last year for an equal amount of money.

“That being said, one of the best ways to manage the cost of buying or owning a home is by getting a great mortgage deal.

“Mortgage repayments are normally the biggest regular expense a person will have, so locking in a better rate could effectively mean giving yourself a pay rise, if it results in hundreds of pounds saved each month.

“Speaking with an independent adviser is a great place to start when on the hunt for a mortgage, as it will often mean accessing a much larger range of options and potentially finding a deal which is better suited to your individual financial needs.”

By Jake Carter

Source: Mortgage Introducer

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Residential property transactions in Q2 2021 were 9% higher than in Q1, and 175% higher than in Q2 2020, according to the HMRC Q2 Stamp Duty Statistics.

The HMRC data also found that non-residential property transactions in Q2 2021 were 12% higher than in Q1, and 79% higher than in Q2 2020.

Total Stamp Duty Land Tax (SDLT) receipts in Q2 2021 were 12% higher than in Q1 2021, and total SDLT receipts in Q2 2021 were 92% higher to those in Q2 2020.

Residential property receipts in Q2 2021 were 12% higher than Q1 2021, and 90% higher than Q2 2020 and non-residential property receipts in Q2 2021 were 11% higher than in Q1 2021.

The 2% surcharge on the purchase of properties by non-residents was introduced on 1 April, to date this has resulted in 2,700 transactions paying £19m.

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HMRC said the increase in residential transactions in the last four quarters was impacted by the introduction of the SDLT holiday for residential properties and an ongoing strength in the housing market.

Looking to First Time Buyers Relief, up to Q2 2020 there were 540,900 claims that benefited from that relief, and the total amount relieved by these claims was £1.2bn over the period.

An estimated 84,700 transactions were liable to higher rates for additional dwellings (HRAD) in Q2 2021, with the 3% element generating £485m in receipts, a decrease of 70% from the previous quarter, and a rise of 125% compared to Q2 2020.

Conor Murphy, chief executive at Smartr365, said: “The stamp duty holiday lit up what was an already heated property market and today’s encouraging findings reinforce just how instrumental this initiative has been in creating the ‘busiest H1 on record’.

“The stamp duty holiday has positioned the property market as a key driver in the UK’s economic recovery and thankfully enabled many in the industry to retain their jobs.

“Most remarkably, the break has created a golden opportunity for both first-time buyers and second-steppers to move onto or up the property ladder, when they otherwise would not have had the financial means to do so.

“However, with just eight weeks until the tax break draws to a close, the government should now plan how it will support buyers in its wake. Permanent reductions to stamp duty will help ensure homeownership remains an accessible venture and that the market retains its buoyancy come the end of September.

“It is crucial that this period of greater accessibility and heightened demand is not just a flash in the pan.”

Stuart Wilson added: “The stamp duty holiday has helped propel an already buoyant property market even further as the sector records one of its busiest periods ever.

“Today’s figures highlight the rush among prospective homeowners to meet the initial tax holiday deadline at the end of June.

“While much of the focus has been on the benefits of the stamp duty holiday for first-time buyers and second steppers, older borrowers have also been using this opportunity to find their forever home.

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“We have seen the proportion of over-55s using equity release to fund property purchases triple from 5% to 15% since the outbreak of the pandemic.

“However, the clock is now ticking with just eight weeks to go before the tapered holiday ends.

“A buyer purchasing the average property used for equity release can stand to save £3,000, but with advisers, lenders and conveyances continuing to face delays, it’s vital to not only work closely together but also to manage client expectations.

“Advisers must also ensure the process is as smooth as possible by working with their clients to prepare all the documentation required from the outset, while as much as 20 working days or more can be saved when clients engage with a specialist equity release solicitor.”

Cloe Atkinson said: “Today’s figures show how the stamp duty holiday successfully boosted demand from buyers right up until the final deadline.

“The high levels of activity the housing market has been able to sustain since the market reopened in 2020, despite the difficulties imposed by the pandemic, show the success of this policy and are also testament to how adaptable and innovative the property industry can be.

“There is, however, still more work to be done. While the tax break boosted the number of house sales, a lot of the savings for buyers were swallowed up by soaring house prices.

“As the tax holiday comes to an end and prices continue to rise, it’s more important than ever that the industry to addresses issues around affordability and accessibility, particularly for those who have been financially impacted by the pandemic.

“Investing in the right technology now is going to be crucial to the future of the market.

“Innovation like open banking has the power to make the mortgage application process more accessible, especially for borrowers with more complex financial histories.

“At the same time innovation in this area will also allow for faster and more efficient lending decisions.

“The industry has come a long way since the market re-opened last year, it’s vital that it sustains this momentum and doesn’t settle for a return to the status quo.”

By Jake Carter

Source: Mortgage Introducer

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The seasonally adjusted estimate of UK residential transactions in March 2021 was 190,980, 102.3% higher than March 2020, according to the latest HMRC Property Transaction data.

On a monthly basis, the figure rose by 32.2%.

The seasonally adjusted estimate of UK non-residential transactions in March 2021 was 12,530, up 53% year-on-year and 24.5% on February.

The HMRC data found that the non-seasonally adjusted estimate of UK residential transactions in March 2021 was 180,690, 107.9% higher than March 2020 and 49.6% higher than February 2021.

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For UK non-residential transactions in March 2021, HMRC found the non-seasonally adjusted estimated was 14,160, 59.2% higher than March 2020 and 61.6% higher than February 2021.

Dave Harris, chief executive of more2life, said: “Today’s findings demonstrate the resilience of the UK housing market.

“Some of the activity in March will no doubt have been fuelled by the ‘race for space’ as homebuyers increasingly prioritise home offices and gardens over the convenience of access to the city centre, but the Chancellor’s extension of the stamp duty holiday will have fuelled buyer appetite as well.

“The reduction in stamp duty has also prompted older borrowers to release the equity in their homes to move to a new house or to purchase a second property.

“At more2life, we have seen the proportion of over-55s using equity release to fund property purchases triple from 5% to 15% in recent months, showing just how essential the Chancellor’s tax break has been in funding people’s ambitions and lifestyle changes during the pandemic.

“We expect this trend to continue in the months running up to the end of the holiday and encourage equity release lenders and advisers to work together when processing cases in order to meet growing consumer demand as efficiently as possible.”

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Jonathan Stinton, head of intermediary relationships at Coventry Building Society, added: “These figures show that it’s still full steam ahead for brokers and the property market.

“It’s clear that the extension of the stamp duty holiday has added fuel to keep the train moving in March, and it’s on track for a great April too with plenty of demand across the board.

“This of course means that brokers have been, and will be, very busy supporting their clients, so it’s a good idea to look for ways to stay on top of things.

“Our web chat tool, for example, is a great way for brokers to get answers to policy queries fast – our team can usually respond within a minute.”

Cloe Atkinson, managing director at Mortgage Engine, said: “March’s data shows there’s still a healthy level of activity in the market, reflecting the high levels of demand from buyers, boosted by the extension of the stamp duty holiday.

“The figures are further proof that the housing market has adapted well to operating efficiently during the pandemic.

“Brokers, lenders, and borrowers have learned how to successfully navigate the difficult conditions caused by lockdown restrictions.

“Tech-driven solutions have been a vital part of this success, allowing many parts of the housebuying process to be completed entirely remotely.

“As pandemic restrictions in England begin to ease, it’s vital that the industry doesn’t lose sight of the benefits these tech solutions can bring.

“While many people are dreaming about a return to the normality of life pre-pandemic, the mortgage industry should be more ambitious.

“As the post-pandemic recovery begins, the industry should focus on building upon the tech adoption of the last year and innovating further to ultimately provide better outcomes for all involved.”

By Jake Carter

Source: Mortgage Introducer

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The provisional seasonally adjusted estimate of UK residential transactions in February 2021 was 147,050, up 48.5% annually, according to the latest HMRC Property Transaction data.

On a monthly basis the estimate is also up 23%, and these figures are the highest number for the month of February since 2007.

Looking to the estimate of UK non-residential transactions in February 2021, this was up 10.2% year-on-year to 10,630, and 25.8% higher than January 2021.

The non-seasonally adjusted estimate of UK residential transactions in February 2021 was 122,840, 48.3% higher than February 2020 and 26.4% higher than January 2021.

Non-seasonally adjusted non-residential transactions in February 2021 was 9,230, 9.9% higher annually and 27.7% higher than the month prior.

Guy Gittins, chief executive of Chestertons, added: “While there is no doubt that there are a lot of people very keen to move home, many didn’t feel comfortable starting the process until they had some idea of when the country might be out of lockdown.

“Once this was provided, we noticed an immediate uplift in new buyers registering with us, and the subsequent announcement confirming the extension of the stamp duty holiday only added to this.

“As the country emerges from lockdown, we expect moving home will be many people’s top priority; just as we saw after the first lockdown; and are therefore anticipating a very busy spring and summer market.

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“We currently have around 70% more properties on the market for sale than we did last year.

“This is good news for buyers as it means that substantial price increases are relatively unlikely for the time being and that there are generally more homes to choose from.”

David Whittaker, chief executive at Keystone Property Finance, added: “Putting these figures into context, today’s HMRC data looks at property transactions before the stamp duty land tax holiday was extended in the Chancellor’s Budget this March.

“As was speculated at the time, today’s figures confirm many purchases rushed through in February as buyers and sellers took advantage of the tax break.

“The stamp duty holiday presents an excellent opportunity for landlords looking to increase their portfolio and cash in on the tax break, however there are significant challenges to navigate as well. 2020 was a challenging year for the buy-to-let market.

“We saw a raft of regulatory changes in areas from energy rating requirements to mortgage payment tax relief and unprecedented market conditions of surging demand paired with limited capacity while working from home.

“These factors have created an unfamiliar market for even experienced landlords.

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“In these times, it is even more essential that borrowers are seeking broker support and guidance to help them secure the best product available.”

Tomer Aboody, director of property lender MT Finance, also reacted to these figures: “With the strongest housing market in more than a decade, both home buyers and investors are taking advantage of historically low borrowing rates.”These favour both those buying a property to live in and those seeking rental assets for yield, significantly boosting the number of transactions.

“With the extension of the stamp duty break, further buyers have decided that now is the time to buy with a potential saving of up to £15,000 to tempt them.

“This saving, along with high loan-to-values and cheaper mortgages, is making this a sellers’ market, with buyers waiting in the wings to pounce.

“Many are prepared to pay higher prices than the past few years so as not to miss out, which is pushing values even higher.”

By Jake Carter

Source: Mortgage Introducer

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