“April showers” lie ahead for property market

HMRC’s provisional seasonally adjusted UK property transaction count for March 2016 was 165,480 residential and 9,830 non-residential transactions.

The seasonally adjusted estimate of the number of residential property transactions increased by 41.5% between February 2016 and March 2016.

Meanwhile, this month’s seasonally adjusted figure is 69.7% higher compared with the same month last year. HMRc said the large increase in transactions for March 2016 is likely to be associated with the introduction of the higher rates on additional properties in April 2016.

For March 2016 the number of non-adjusted residential transactions was about 74.8% higher compared with February 2016. The number of non-adjusted residential transactions was 77.1% higher than in March 2015.

Andrew Bridges, managing director of London estate agents Stirling Ackroyd, said: “Movement is back on track in the property market – and it’s encouraging to see more selling and buying. But the flurry of the last month could only be a short-term feature – April showers lie ahead.

“Since March, there has been a slowdown in property sales, particularly at the top end of the market. The East of London is showing the greatest strength, while the West bears the brunt. After a summit in sales has been reached, there’s now a natural dip. But following this short-term correction, there will be a more stable, and sustainable selling rhythm for the rest of 2016.

“After the distraction of stamp duty changes, it’s back to the same challenges for the property market. A lack of supply isn’t helping the situation – pushing many Londoners out of the capital in search of affordable homes. What London needs is a plan. A plan to get things going again. In just a couple of weeks, London will see a new mayor enter the fray. It’s up to them to help shake up housing as the first and foremost priority. People need to keep moving to keep London moving.”

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