Latest news with #Propertymark
Yahoo
a day ago
- Business
- Yahoo
Home sales jump by a quarter month on month in May following April slump
The number of home sales picked up by a quarter month on month in May following a plunge in April as a stamp duty holiday ended, according to HM Revenue and Customs (HMRC) figures. Across the UK, around 81,470 home sales were recorded provisionally in May, which was 25% higher than April but a 12% fall compared with May 2024. Stamp duty discounts became less generous for some homebuyers from April, with people rushing to complete deals before the deadline. Stamp duty applies in England and Northern Ireland. HMRC's report said: 'The increase in transactions for May follows decreased transactions for April, which were likely brought forward into March to take advantage of the higher thresholds.' Tom Bill, head of UK residential research at Knight Frank, said: 'Housing transactions are still clambering back to normal levels after the stamp duty cliff-edge earlier this year.' He added: 'One thing slowing down the process is the vast quantity of stock on the market, which means asking prices need to be kept realistic to trigger activity. 'At this halfway point in the year, the tariff and stamp duty chaos are largely behind us, but tax rise speculation ahead of the Budget could see some buyer hesitation creep back in.' Nick Leeming, chairman of Jackson-Stops, said: 'In the current market, it's essential for sellers to remember there is always demand for a sensibly-priced property.' Nathan Emerson, chief executive officer of property professionals' body Propertymark, said: 'We have seen positivity regarding the number of properties coming to the market.' Richard Donnell, executive director at Zoopla, said data from the website indicates that 'new sales are being agreed at the fastest rate for four years, as more homes for sale means more buyers in the market, with the stamp duty changes in the distant past in the minds of home buyers'. He said: 'The market remains on track for 1.15 million sales in 2025, up 5% on 2024 levels as more households move home.' Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: 'The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. 'There's plenty of desire to buy in the core price ranges and we're also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. 'Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Transaction numbers have risen again as (Bank of England) base rate reductions encourage activity and enable borrowers to plan ahead with more confidence. 'We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture. 'In the meantime, lenders continue to trim their mortgage rates as swap rates fall. Easing of criteria should also enable borrowers take on bigger mortgages in coming months.' Several mortgage lenders have recently announced changes to their affordability criteria, enabling some borrowers to take out bigger loans. This follows clarification from the Financial Conduct Authority (FCA), which also launched a discussion paper this week inviting debate on the future of the mortgage market to help support borrowers. Tony Hall, head of business development at Saffron for Intermediaries, said: 'Looking ahead, there are reasons to remain optimistic. 'With summer demand building and more homes coming to market, conditions are gradually shifting in buyers' favour as we move into the second half of the year.' Kevin Roberts, managing director of L&G's mortgage services business, said: 'Today's figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.' Iain McKenzie, chief executive of the Guild of Property Professionals, said: 'The rush to complete in March created an artificial lull, but we are now seeing the return of genuine, underlying demand.' He continued: 'The recent (Bank of England base rate) cut to 4.25% has provided a welcome boost to buyer affordability. 'However, the most significant catalyst is the relaxation of affordability criteria from lenders. By enabling buyers to borrow more and stress-testing against more realistic rates, lenders have unlocked a new wave of purchasing power, playing a crucial role in driving these transactions forward.' He added: 'Buyers now have more choice than they've had for years, which is helping to keep price growth sustainable.'
The Independent
a day ago
- Business
- The Independent
Home sales jump by a quarter month on month in May following April slump
The number of home sales picked up by a quarter month on month in May following a plunge in April as a stamp duty holiday ended, according to HM Revenue and Customs (HMRC) figures. Across the UK, around 81,470 home sales were recorded provisionally in May, which was 25% higher than April but a 12% fall compared with May 2024. Stamp duty discounts became less generous for some homebuyers from April, with people rushing to complete deals before the deadline. Stamp duty applies in England and Northern Ireland. HMRC's report said: 'The increase in transactions for May follows decreased transactions for April, which were likely brought forward into March to take advantage of the higher thresholds.' Tom Bill, head of UK residential research at Knight Frank, said: 'Housing transactions are still clambering back to normal levels after the stamp duty cliff-edge earlier this year.' He added: 'One thing slowing down the process is the vast quantity of stock on the market, which means asking prices need to be kept realistic to trigger activity. 'At this halfway point in the year, the tariff and stamp duty chaos are largely behind us, but tax rise speculation ahead of the Budget could see some buyer hesitation creep back in.' Nick Leeming, chairman of Jackson-Stops, said: 'In the current market, it's essential for sellers to remember there is always demand for a sensibly-priced property.' Nathan Emerson, chief executive officer of property professionals' body Propertymark, said: 'We have seen positivity regarding the number of properties coming to the market.' Richard Donnell, executive director at Zoopla, said data from the website indicates that 'new sales are being agreed at the fastest rate for four years, as more homes for sale means more buyers in the market, with the stamp duty changes in the distant past in the minds of home buyers'. He said: 'The market remains on track for 1.15 million sales in 2025, up 5% on 2024 levels as more households move home.' Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: 'The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. 'There's plenty of desire to buy in the core price ranges and we're also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. 'Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Transaction numbers have risen again as (Bank of England) base rate reductions encourage activity and enable borrowers to plan ahead with more confidence. 'We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture. 'In the meantime, lenders continue to trim their mortgage rates as swap rates fall. Easing of criteria should also enable borrowers take on bigger mortgages in coming months.' Several mortgage lenders have recently announced changes to their affordability criteria, enabling some borrowers to take out bigger loans. This follows clarification from the Financial Conduct Authority (FCA), which also launched a discussion paper this week inviting debate on the future of the mortgage market to help support borrowers. Tony Hall, head of business development at Saffron for Intermediaries, said: 'Looking ahead, there are reasons to remain optimistic. 'With summer demand building and more homes coming to market, conditions are gradually shifting in buyers' favour as we move into the second half of the year.' Kevin Roberts, managing director of L&G's mortgage services business, said: 'Today's figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.'
The Independent
08-05-2025
- Business
- The Independent
Bank of England cuts interest rates to 4.25 per cent in boost to businesses
The Bank of England has confirmed a 25 basis points cut to the Bank Rate down to 4.25 per cent, a second such drop this year in an ongoing boost to businesses and mortgage payers alike. Following cuts in February and now May, the base rate is down from a high of 5.25 per cent to a level last seen two years ago in May 2023. While the Monetary Policy Committee (MPC) had been widely expected to bring interest rate down this time, there is a wider possibility for back-to-back rate cuts - while some analysts predict a further three cuts to happen this year, bringing the interest rate down below four per cent for the first time since January 2023. That will still be partly dependent on factors such as inflation, any lingering impact from the Trump tariffs and also domestic business and employment data following April's rise in labour costs - as well as increased household bills. Nathan Emerson, chief executive of Propertymark, said: "Today's news will no doubt be extremely welcome for many, especially given current economic uncertainties. International bodies have recently stated they expect interest rates to fall in the UK as the year progresses. Overall, we hope to see interest rates further continue their downward trajectory over the course of 2025. "The UK housing market has recently been buoyed by Stamp Duty threshold changes leading up to the start of April, and with the busier spring and summer months now here, this base rate reduction should attract even more buyers and sellers to the market and provide greater affordability. "Housing is a central part of the UK economy, and we now hope to see considering the UK Government and the devolved administrations have shown a keen focus on housing growth, is that they look ahead to achieving their individual housebuilding targets to meet growing demand." Businesses habitually look to invest more money in projects or personnel when interest rates are lower, as the cost of taking on debt is in turn lower. Theo Chatha, CFO of Bibby Financial Services, pointed out that more than six in ten smaller businesses (62 per cent) have said they'd 'feel more confident investing' with lower rates - but cautioned against potential future interest rate rises if the UK faces inflationary pressures as a result of Trump tariffs. 'The Bank may need to raise rates again later in the year to curb inflation due to tariffs friction,' he said. 'This threatens to dampen SMEs' ambition – meaning investment plans are delayed further, but SMEs can't afford a 'wait and see' approach to decision making. Against economic uncertainty, businesses that continue to invest and plan for every scenario will stay ahead of the competition.' While this interest rate cut was already largely priced into mortgage markets, the possibility of future interest rate cuts should still see more competitive product rates emerging in the months ahead. Plenty of lenders are already fighting a sub-four per cent battle, a relief to any of those homeowners set to come to the end of a fixed term across the coming months. On the other hand, while loans will also become cheaper to pay off if not linked to fixed interest rates, any cash held in variable rate savings accounts could soon be earning less.
Glasgow Times
08-05-2025
- Business
- Glasgow Times
Average UK house price increased by nearly £900 in April
Halifax recorded a 0.3% month-on-month price rise in April, following a 0.5% monthly fall in March. The annual house price growth rate ticked up to 3.2% in April, from 2.9% in March, Halifax said. The average property price in April was £297,781, up from £296,899 in March. Amanda Bryden, head of mortgages, Halifax, said: 'UK house prices rose by 0.3% in March, an increase of just under £900. (PA Graphics) 'We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. 'However, this didn't lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic.' Halifax's figures are in contrast to Nationwide Building Society's latest house price index, released last week. Nationwide reported that house price growth had softened, with prices dipping by 0.6% month on month in April and price growth also slowing on an annual basis, at 3.4% in April, down from 3.9% in March. Stamp duty 'nil rate' bands have become less generous from April, with some buyers facing higher costs for moving home. Stamp duty applies in England and Northern Ireland. Ms Bryden said 'modest price growth' is expected this year, adding: 'Overall, the market continues to show resilience, despite a subdued economic environment and risks from geopolitical developments.' Looking across the UK, Halifax recorded strong house price growth in Northern Ireland, Wales and Scotland, with a more subdued picture in south-west England and London. Nathan Emerson, chief executive of property professionals' body Propertymark, said of the Halifax figures: 'This is a sign of sustained confidence in the UK's housing market following a recent stamp duty surge in home buying, and it should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder.' Iain McKenzie, chief executive of the Guild of Property Professionals, said: 'We're seeing mortgage rates continue their welcome descent, with sub-4% deals now reappearing, which is a clear boost for buyer affordability and confidence.' Jonathan Handford, managing director at estate agent group Fine & Country, said: 'The rebound in prices suggests the market may be finding its footing after a turbulent few months.' Matt Thompson, head of sales at London-based estate agent Chestertons, said: 'In April, some house hunters paused their search amid the Easter holidays, but sellers remained motivated which resulted in an uplift in the number of properties put up for sale.' Tom Bill, head of UK residential research at Knight Frank, said: 'Demand has increased as more mortgage rates drop below 4%, which will underpin prices while the momentum is maintained. 'Tariff turbulence has helped push interest rate expectations lower but buyers could be put off if it gets too bumpy.' Jason Tebb, president of OnTheMarket, said: 'With property prices remaining relatively steady, this suggests that affordability is having an impact on the amount buyers are willing and/or able to pay.' Babek Ismayil, founder and chief executive at homebuying platform OneDome, said: 'This increase masks ongoing affordability pressures and the longer-term hangover from the stamp duty changes in April.' Tomer Aboody, director of specialist lender MT Finance, said: 'The end of the stamp duty holiday in March saw a big push in transactions completing by the end of the month so that buyers could avoid the tax increase. 'We are now seeing the fallout, with transactions and mortgage approvals falling, although prices are holding steady.' Here are average house prices and the annual increase, according to Halifax. The regional annual change figures are based on the most recent three months of approved mortgage transaction data: East Midlands, £245,884, 3.0% Eastern England, £335,619, 2.0% London, £543,346, 1.3% North East, £175,207, 2.1% North West, £240,975, 4.1% Northern Ireland, £208,220, 8.1% Scotland, £214,011, 4.6% South East, £391,830, 2.0% South West, £304,451, 0.9% Wales, £229,079, 4.7% West Midlands, £261,098, 3.3% Yorkshire and the Humber, £214,844, 3.8%
Powys County Times
08-05-2025
- Business
- Powys County Times
Average UK house price increased by nearly £900 in April
The average UK house price increased by nearly £900 month on month in April, despite some homebuyers facing a stamp duty cliff edge, according to an index. Halifax recorded a 0.3% month-on-month price rise in April, following a 0.5% monthly fall in March. The annual house price growth rate ticked up to 3.2% in April, from 2.9% in March, Halifax said. The average property price in April was £297,781, up from £296,899 in March. Amanda Bryden, head of mortgages, Halifax, said: 'UK house prices rose by 0.3% in March, an increase of just under £900. 'We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. 'However, this didn't lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic.' Halifax's figures are in contrast to Nationwide Building Society's latest house price index, released last week. Nationwide reported that house price growth had softened, with prices dipping by 0.6% month on month in April and price growth also slowing on an annual basis, at 3.4% in April, down from 3.9% in March. Stamp duty 'nil rate' bands have become less generous from April, with some buyers facing higher costs for moving home. Stamp duty applies in England and Northern Ireland. Ms Bryden said 'modest price growth' is expected this year, adding: 'Overall, the market continues to show resilience, despite a subdued economic environment and risks from geopolitical developments.' Looking across the UK, Halifax recorded strong house price growth in Northern Ireland, Wales and Scotland, with a more subdued picture in south-west England and London. Nathan Emerson, chief executive of property professionals' body Propertymark, said of the Halifax figures: 'This is a sign of sustained confidence in the UK's housing market following a recent stamp duty surge in home buying, and it should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder.' Iain McKenzie, chief executive of the Guild of Property Professionals, said: 'We're seeing mortgage rates continue their welcome descent, with sub-4% deals now reappearing, which is a clear boost for buyer affordability and confidence.' Jonathan Handford, managing director at estate agent group Fine & Country, said: 'The rebound in prices suggests the market may be finding its footing after a turbulent few months.' Matt Thompson, head of sales at London-based estate agent Chestertons, said: 'In April, some house hunters paused their search amid the Easter holidays, but sellers remained motivated which resulted in an uplift in the number of properties put up for sale.' Tom Bill, head of UK residential research at Knight Frank, said: 'Demand has increased as more mortgage rates drop below 4%, which will underpin prices while the momentum is maintained. 'Tariff turbulence has helped push interest rate expectations lower but buyers could be put off if it gets too bumpy.' Jason Tebb, president of OnTheMarket, said: 'With property prices remaining relatively steady, this suggests that affordability is having an impact on the amount buyers are willing and/or able to pay.' Babek Ismayil, founder and chief executive at homebuying platform OneDome, said: 'This increase masks ongoing affordability pressures and the longer-term hangover from the stamp duty changes in April.' Tomer Aboody, director of specialist lender MT Finance, said: 'The end of the stamp duty holiday in March saw a big push in transactions completing by the end of the month so that buyers could avoid the tax increase. 'We are now seeing the fallout, with transactions and mortgage approvals falling, although prices are holding steady.' Here are average house prices and the annual increase, according to Halifax. The regional annual change figures are based on the most recent three months of approved mortgage transaction data: East Midlands, £245,884, 3.0% Eastern England, £335,619, 2.0% London, £543,346, 1.3% North East, £175,207, 2.1% North West, £240,975, 4.1% Northern Ireland, £208,220, 8.1% Scotland, £214,011, 4.6% South East, £391,830, 2.0% South West, £304,451, 0.9% Wales, £229,079, 4.7% West Midlands, £261,098, 3.3%
