With the end of 2017 drawing near, our conveyancing solicitors have decided to look back on recent trends in the housing market and reflect on which seasons are the best times of year to buy and sell.
The Festive Shut Down
Back in 2014, we wrote ‘Buying and Selling a House in the Winter – Is it a Good Idea?’ which looked at quarterly Land Registry data from 2011 to 2013 which revealed the number of property transactions completed dipped during the first quarter of every year.
More than three years later, this seasonality can still be seen in the housing market trends. Whether it’s due to solicitors’ firms shutting during the festive break or simply due to lack of demand, this winter dip has continued.
Source: HM Revenue & Customs, UK Property Transaction Statistics
This is also reflected in Google Trends data which reveals that searches for conveyancing law or moving home related terms begin to cool at the end of October in the run up to Christmas, hitting annual lows between Christmas and New Year, before beginning to pick up in January.
Buy-to-Let Becomes More Commercial
With the introduction of reforms to tax reliefs, many existing and prospective landlords began setting up limited companies at the beginning of 2017. And, according to The Financial Times, seven in ten buy-to-let applications for house purchases were made via limited companies in the first nine months of 2017.
Although increasingly popular, it is important to note that setting up a limited company in order to expand a property portfolio is not suitable for everyone. We would always recommend discussing your options with your conveyancing solicitor and financial advisors to fully-understand the tax implications and the changes to lending this will cause.
Big City Development
The UK’s major cities have extremely high-demand for affordable housing which is quickly turning them into property development hotspots.
Whether this is existing owners expanding their properties rather than moving thanks to permitted development rights or international developers refurbishing or building due to the weakness of the sterling in the wake of Brexit, property development has seen a huge boost this year, which will likely cool slightly as we enter 2018.
Our 2018 Predictions
Our residential conveyancing solicitors predict that as we enter the new year, political uncertainty will continue to influence housing market trends in terms of demand and returns, however house price trends will continue to rise slowly.
The fact that stamp duty has now been abolished for many first time buyers will also likely see demand rise as purchasing becomes more affordable.
Read more: Budget 2017 Launches Changes to Stamp Duty for First-Time Buyers
If you’re considering buying or selling and would like to learn more about current house market trends or our legal services, get in touch with our residential conveyancing solicitors by calling 0808 178 2773.
