Written By Em

As we near the end of 2017, NAEA (the National Association of Estate Agents) and ARLA (the Association of Residential Letting Agents) Propertymark have analysed their sales and lettings data for the year, to offer a property market overview…

In 2017, demand for homes spiked in January and February, with an average of 425 house hunters registered per NAEA member branch. Demand was higher this year than in 2016, with an average of 380 prospective buyers registered per branch, compared to 365 over the course of last year.

The supply of housing peaked in February, with an average of 44 properties available to buy per branch. Annually, supply has not shifted, however, averaging 39 properties per month in 2016 and 2017.

February and June experienced the highest number of agreed house sales, with an average of 11 per branch. In 2016, the amount of sales agreed peaked in March, at ten per branch. On average, the number of sales agreed was up in 2017, with an average of nine per month, compared to eight in 2016.

The proportion of total sales made to first time buyers, however, hit the lowest level seen since 2013 this year, at 25%.

In 2017, properties were sold for less than the asking price 77% of the time on average – just 4% were sold for more than the original asking price.

Mark Hayward, the Chief Executive of NAEA Propertymark, comments: “2017 has been a busy year for the property market, and the Budget announcement to abolish Stamp Duty for first time buyers has given them some optimism. This year saw an average of 25% of sales to first time buyers – the lowest in four years.

“Looking to next year, it will be interesting to see what impact the Stamp Duty change had on the market, and if it really does help first time buyers get on the ladder. We still only have a limited supply of housing available, and policymakers need to think about how to help others in the chain, such as second steppers and those that would downsize in order to free up more larger homes suitable for families.”

In the private rental sector, the supply of properties was at its highest in January, when it stood at an average of 193 per ARLA member branch. In 2016, the average number of properties available per month was 180, compared to 188 from January to October 2017.

This year, the amount of buy-to-let landlords selling their properties peaked in March and April, when letting agents reported a 33% increase in the number of landlords selling up.

In August, the amount of tenants experiencing rent price hikes peaked at 35%, before dropping to 27% in September. Rents were least likely to rise in October (22%), but, overall in 2017, 27% of tenants saw prices increase, compared to 26% in 2016.

Tenants were the most successful at negotiating rent reductions in March (3.6%). In 2016, the most successful month for rent negotiations was December, when 3.1% of tenants were successful.

On average, properties were viewed more times before being let in 2017 than in 2016. Last year, letting agents typically hosted five viewings per property, which rose to six in 2017.

David Cox, the Chief Executive of ARLA Propertymark, responds to the findings: “It was always going to be an interesting year, following the announcement of the letting agent fee ban in last November’s Autumn Statement. I think we’re starting to see a consolidation of some agencies in the industry as the fee ban looms, which could explain why the number of properties under management has increased.

“Landlords are becoming more selective about their property investments in light of last year’s Stamp Duty Land Tax changes. Mortgage Interest Relief (MIR) is starting to bite, which is why we saw an increased number of landlords selling up. It’s likely that, as we move into 2018, tenants will continue to see rent increases as supply starts to reduce, demand continues apace, and legislative changes increase costs for landlords.”

December is here, which means that Christmas markets have popped up all over the UK. Offering seasonal treats and gifts in the run-up to the big day, these markets provide a delightful experience that contrasts to the usual high street madness that is Christmas shopping in the UK.

Research by the Nabma ROI team has shown that Christmas markets bring significant benefits to the towns and cities that host them, generating more than £250m in visitor spending, as well as positively affecting spending in other stores within the vicinity. They can also have a positive impact on the local property market…

Jean Liggett, the CEO of Properties of the World, explains: “There are many factors that make a town or city a desirable place to live, and this includes the range of amenities. Once a location establishes itself as offering an enticing Christmas market each year, that becomes part of the overall attraction to the area – and the more attractive an area, the more success those investing in its property market can enjoy.”

In light of the arrival of Christmas markets around the UK, here are the top property investment hotspots that have benefitted from festive cheer:

London

The capital offers a range of Christmas markets, from Hyde Park’s Winter Wonderland to the stalls of the South Bank. This year, Hampstead Village will host its first Christmas fair, transforming the entire high street into a magical, festive experience.

Birmingham 

Already a mecca for shoppers, Birmingham ups its game each December, with the largest German market outside of Germany or Austria. Mulled wine, craft beers and Christmas gifts are the order of the day, as visitors soak up the joyful atmosphere.

Manchester 

With an extensive market in front of the town hall that attracts millions of visitors each year and a large ice rink for seasonal frolics, Manchester certainly can’t be accused of not getting into the Christmas spirit.

Liverpool 

Liverpool’s Christmas market always brings festive magic to the heart of the city, as twinkling fairy lights guide shoppers’ paths around its winter huts. Food, jewellery, arts, crafts and clothes from four continents mean that those seeking alternative Christmas presents have plenty of choice.

Halifax

The recently renovated and re-opened Piece Hall will this year host a spectacular Christmas extravaganza, including a carefully hand-picked festive market packed with local Yorkshire retailers and gourmet food providers.

With many Christmas markets now in full swing, it’s time to wrap up warm and enjoy the best of the festive shopping season – whether you’re seeking presents or properties!

Jonathan Stephens, the CEO of Surrenden Invest, adds: “Homes by Christmas markets always attract keen interest at this time of year, whether they’re investment properties or those for sale to owner-occupiers. Christmas markets give these properties a little something that other homes don’t have, and many buyers are keen to take that into account when making their purchase.”

While first time buyers will be celebrating their lack of Stamp Duty to pay on homes worth up to £300,000, the Managing Director of housebuilder Bellis Homes says that a large proportion of the housing market is still restricted by the controversial tax.

In Wednesday’s Autumn Budget statement, the Chancellor, Philip Hammond, announced a measure that is sure to delight all of those aspiring first time buyers unable to afford their own homes. From Wednesday (22^nd November 2017), first time buyers won’t be required to pay Stamp Duty on homes worth up to £300,000. It’s also good news for those purchasing their first homes in more expensive parts of the country, such as London and the South East, as the first £300,000 of homes worth up to £500,000 will not be subject to the tax.

Bellis Homes’ Henry Fordham is worried, however, that the change won’t positively affect enough people: “We are pleased to see widespread reform and investment in the UK housing market. Although abolishing Stamp Duty for first time buyers is a positive step, it being limited to £300,000 means its impact is minimised in many areas where many young professionals are required to work and live, such as London and linked commuting areas.”

Instead, he would have preferred an outright suspension of the tax: “I feel the Chancellor should have committed to his consideration of a temporary Stamp Duty holiday. Such a measure would have ensured the most immediate catalyst across the market and country as a whole to the benefit of the economy, as this would have supported total market transactions and had the greatest impact on the housing market, professionals within it and homeowners looking to move, up or downsize.”

Because it was only first time buyers given leeway on Stamp Duty, Fordham feels that “a large proportion of the market is still restricted, which could have been supported to the benefit of the economy”.

We have full details of the measures announced in Wednesday’s Budget, along with the thoughts of more industry professionals, here.