Transactions down as election impact is revealed
The true impact of the election on the housing market has been revealed as the latest government figures on house transactions show a 3.4 per cent drop between March and April, and a 5.6 per cent drop over the past year.
“Only a few weeks ago, the outcome of this general election was a mystery and buyers were sitting on the fence to watch the spectacle unfold. Sales were stalling, and house price growth was also braking in many places across the country” says Adrian Gill, director of Your Move and Reeds Rains estate agents.
“The market above £2m – which is starting to digest the new higher stamp duty costs – is now free from the fear of mansion tax. We expect to see the market really awaken to the opportunities that are on offer– with buyers acting quickly to take advantage of more available stock, better mortgage rates, lower stamp duty (for those buying under £937,000) and Help to Buy schemes” says Peter Rollings, chief executive of Marsh & Parsons.
Meanwhile separate data from the Council for Mortgage Lenders suggests tyhat home-owners )excluding buy-to-let owners) had about £3,778 billion in housing wealth in 2014.
That is some £285 billion higher than in 2007, equivalent to an increase of about eight per cent.
This puts the average value of a property across all home-owners at £213,000 in 2014.