Property transaction increase post election? - Not unexpected
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. That's transactions, not prices.
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 down and house price growth was stalling in many places across the country.
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 the market to 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.
Meanwhile separate data from the Council for Mortgage Lenders suggests that 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 and puts the average value of a property across all home-owners at £213,000 in 2014