Property market’s surprise revival during Xmas run-up
Data from several sources reveals busy December for agents.
The number of homes sold in the UK unexpectedly increased by 0.2% during the usually quiet run to Xmas last year, the HMRC has revealed.
It tracks all residential property transactions over £40,000 and says 220 additional homes were sold during December compared to the month before.
The uptick in activity was felt by many agents across the UK as buyers, frightened off buying or moving as the Brexit aftershock rumbled on, returned to the market late in the year. One Winkworth franchisee on the South Coast even considered cancelling its branch Xmas party to cope with demand.
More properties were also sold during 2016 than the year before, up by just under 3% to 1,057,340 despite the substantial reduction in sales following the introduction of extra Stamp Duty on second homes and buy-to-let properties in April last year.
“Despite the figures showing a slight monthly rise in the number of homes being bought and sold, the housing market remains overshadowed by our nation’s ongoing supply crisis,” says Stephen Smith of L&G Housing Partnerships (pictured, left).
“Two key factors are hindering the housing market from reaching its full potential. The first is the ever-expanding gap between supply and demand, and the second is the increasing disparity between wage inflation and house price inflation. These two components need to be resolved if we are ever going to see the return of a healthy and stable housing market.”
December was also an unusually busy month for first time buyers. The National Association of Estate Agents (NAEA) says a third of sales were made to buyers during the run-up to Christmas, the highest proportion recorded since December 2001.
“In November we saw a seasonal slowdown; typically it’s uncommon for people to buy and move close to Christmas,” says NAEA managing director Mark Hayward (pictured, right).
“Yet, our December findings have completely bucked this seasonal trend. With demand at an all-time December high and sales to FTBs at their highest on record, 2016 closed on a positive note following several months of uncertainty.”
