In yesterday’s Autumn Statement Philip Hammond had the perfect opportunity to listen to the property professionals and remove the onerous SDLT increases brought in by the previous chancellor George Osbourne. We were disappointed however, though once again not entirely surprised, that the Chancellor did not reform stamp duty at the upper end of the market, or reverse the extra 3% recently introduced on secondary homes and BTL landlords. The government also missed a trick to bring regulation to letting agents by creating a standard fee and instead opted to ban lettings fees charged to tenants altogether. Clearly the government has failed to get to grips with the industry, as they don’t seem to realise that agents are not able to afford to.
For the first time since we opened our doors for business in 2014 we have found that our rental income, for the last 3 months, has overtaken our sales income. This has come as no surprise to us at NVP. We were expecting the sea change and believe the trend is here to stay for the next couple of years while our government implements Article 50 and negotiates new trade agreements with Europe and the rest of the world. This seems to correlate with the other leading estate agencies, most of which are anticipating more properties being available to rent than for sale in 2017. Recent data relating to the PCL super-prime lettings market regarding transactions above £5,000 per.
After a subdued 3 months post the referendum we crossed our fingers that we would see a pick-up of activity heading towards the Christmas period. Our expectations, or rather our hopes, have been realised this week as we have received more offers on our properties than we’ve seen in the last quarter. We are finding that offers coming in on properties which have already had a price reduction are within 5-10% of the new asking prices. However, those properties which have seen no price reductions throughout their marketing period are failing to receive offers or are receiving offers 20%-30% below their asking prices. This seems to dovetail in quite nicely with recent data released by LonRes for Autumn 2016 which shows that.
After the first full year under the new stamp duty system it would seem that HMRC has had a small gain in revenue. However these figures are somewhat deceiving, and if one extrapolates the increase in transaction in March 2016 to beat the extra 3% stamp duty on secondary homes, then the net SDLT receipts will show a loss. We believe that next quarter’s figures will paint a bleaker picture as the pronounced slow-down in transactions in the South East starts to trickle down through the rest of the country which up until now had still been seeing continued price growth. Impacted by onerous transaction taxes, and further compounded by economic uncertainty, the UK’s super-prime market has been under downward pressure since SDLT.
Due to the fall in prices in PCL over this year, coupled with the sharp, post Brexit fall in sterling against the dollar and the euro, we are beginning to see more buyers stepping into the market and beginning to make offers. As we mentioned recently, we are finding that vendors who are pricing their properties correctly in line with current market conditions are achieving offers at asking or very close to it. There are, of course, other types of buyers out there: those who want to buy but who feel that prices and sterling will continue to fall, and then those who are trying it on and putting forward ridiculous offers. For those buyers waiting for a further fall in prices and.