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House Sales Have Fallen 2017

House Sales Have Fallen 2017

House Sales Have Fallen 2017

House sales have fallen for the first time since 2009, this is due to high prices and the new stamp duty regulations which have led to in some areas of the UK seen sales drop by nearly a third over the past year.

London has been hit the hardest where sales are down by 18{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3}, across England and Wales sales are down by 7{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} in 2016 to 848,857. In the south-east, they are down 10{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3}. Berkhamsted and Brent are where sales have dropped by 30{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3}.

Since the peak of the housing market where sales were up at 1.2- 1.3m before the financial recession our sales activity is substantially below these figures. In areas such as Hull and Westminster sales have fallen by 55{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} over the last decade, vendors in these areas find it hard to sell house fast with fewer buyers being able to afford to purchase their homes, is a quick house sale a thing of the past?

Once buoyant parts of London are seeing big falls in sales, areas such as Hackney (down 26{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} last year) and Southwark (down 24{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3}). Areas with economic problems such as old coal town Workington has seen selling you house fast fall 26{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3}.

” During the past year the housing market recovery has stumbled with house sales declining in all areas of the UK,” said Scott Mcardle of HHB. ” Even with the new government schemes and low-interest rates, sales of houses across England and Wales are significantly lower than they were a decade ago.”

House prices are nearing an all-time peak which is another potential deterrent to buyers. The average price of a home in Britain has risen by 3.3{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} to £220,706 in 2016 according to the Halifax bank, this figure is still below the all-time high in December 2016 of £222,190.  Having said this prices since the housing market boom in 2006 are up 29{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} nationally and 93{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} in London.

According to Lloyds, there is some up side to these figure and that is the first time buyers make up the biggest portion of buyers across the UK than in recent years. Home House Buyers’ director of our quick house sale division and all round wealth of knowledge says due to the stamp duty increase this has reduced sales in the buy to let market and also the second home area, which has had a knock-on affect on the premium end market in London and the south-east.

 

Source: Guardian

We have worked out that the average cost of moving is around £12,000 in England and Wales, which rises to £31,000 if you are moving to London. So stamp duty on a home costing £1m will be £43,750, then you’ll have solicitors fees, moving costs and any funding arrangement fees to pay, which makes moving very expensive for any family.

The buy to let boom has fundamentally changed the dynamics of the property market. Pensions have bought up many small flats and houses for investments which will probably not come back on the market for decades to come, said McArdle.

On average a property is traded once every 8 to 10 years, McArdle, even though the rule of thumb is a house changes hands every 7 years is a myth and no data to back this theory up, the quick sale market is very fickle and some people do buy their forever home and stay there for a long time.

The problem with the decline of activity is the knock on effect which it has across the economy in a whole, it will affect Estate agents income, surveyors, banks and conveyancing solicitors, even through to furniture and electrical stores which all benefit from people moving home and need to buy new goods.

 

Source: Guardian

Countrywide Estate agent group, closed more than 50 of its branches across the UK, while Foxtons warned in April of this year that in 2017 is going to be a tough year for trading as they reported a fall of 54{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} in profit from the previous years trading. But is this due to the rise of online estate agents with lower fees and the old style estate agency methods losing out to Rightmove and Zoopla.

Having said that the total number of estate agents in the UK is about 14{8eb9e8983326504b9fbc6c39f929c9d825182069ee832d61f65c7629f46a4ae3} above the pre-recession peak in 2006, said James Brian of the bricks are Purple estate agency, with rising house prices the commission is more valuable and the competition more fierce within the marketplace. He also warned that if sales do continue to fall that Estate Agents will have to close as there won’t be enough transaction to keep them all in business.

“Commission has been reduced in percentage terms, this is due to more competition in the marketplace, but with house prices rising there is a vast difference in what we receive.”  The truth is we aren’t seeing lots of closure when you look at a number of sales which are taking place does suggest that this isn’t sustainable and the sad truth is we will see more and more closures in the future.

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