NAEA and ARLA Propertymark have analysed their sales and lettings data to reveal trends and expectations for 2018.
Sales Data Findings
- Demand spiked in January and February at 425 house-buyers registered per branch. Demand was higher this year than in 2016, with an average of 380 prospective buyers registered per branch, compared to 365 on average over the course of last year.
- Supply of housing peaked in February with 44 properties available to buy per branch.
- Year on year, supply has not shifted, averaging at 39 properties available per branch in 2016 and 2017.
- February and June saw the highest number of sales agreed, with an average of 11 per branch. In 2016, with an average of nine per branch every month, compared to eight in 2016.
- The proportion of total sales made to first-time buyers (FTBs) on average over the year hit the lowest seen since 2013.
- In 2017, properties were sold for less than asking price on average 77 per cent of the time – only four per cent were sold for more than the original asking price.
Mark Hayward, Chief Executive, NAEA Propertymark comments on the findings: “2017 has been a busy year for the property market, and the Budget announcement to abolish stamp duty for FTBs has given them some optimism. This year saw an average of 25 per cent of sales to FTBs, 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 FTBs 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.”
Data findings private rented sector:
- Supply of rental properties were at their highest in January, when it stood at 193. On average in the number of properties available per branch was 188 from January – October 2017.
- This year, the number of buy-to-let (BTL) landlords selling their properties peaked in March and April when agents reported a 33 per cent spike in the number of landlords selling up
- In August, the number of tenants experiencing rent hikes peaked at 35 per cent, overall in 2017, 27 per cent of tenants had their rents increased compared to 26 per cent in 2016
David Cox, Chief Executive, ARLA Propertymark comments on 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 (SDLT) 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.”