(covering reddish, dane bank, denton, debdale and gorton)

Category: property market news

RESIDENTIAL STAMP DUTY LAND TAX RECEIPTS

  • Treasury coffers have netted close to £9.3 billion in SDLT (Stamp Duty Land Tax) receipts on 1.1 million residential transactions across the UK in 2017–18.
  • While sales volumes rose by just 1% over this last year, residential tax receipts rose by 8%. The mean amount of SDLT paid per residential transaction was £8,700.
  • Over a quarter of a million (252,000) properties were purchased as additional dwellings in 2017-2018, up 9% on 2016/17 and these accounted for 44% of all residential SDLT receipts. The 3% element alone has netted the government just shy of £1.9 billion.
  • Although sales volumes across London, the South East and East of England fell, residential stamp duty intake in all regions increased. London accounts for 39% of all residential SDLT receipts, with Westminster and the Royal Borough of Kensington and Chelsea contributing just over £1 billion between them
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JUST 35% OF THOSE AGED 25–34 OWN THEIR OWN HOME

  • Just 35% of 25 to 34 year olds were homeowners in 2017, down from 55% twenty years ago. Only 60% of young adults with a 10% deposit and a loan based on an income multiplier of 4.5, can afford the cheapest properties in their local area according to a new report produced by the Institute of Fiscal Studies.
  • Rising property prices, primarily prior to the financial crisis, compared to incomes have been the major factor in this change. Adjusting for inflation, average house prices in England have risen by 173% over the last twenty years, compared to real incomes of those aged 25 to 34 which have risen by just 19%.
  • Regional disparity in house prices is far more acute than among incomes. Across London and the South East over 90% of young adults would need to save at least six months’ income for a 10% deposit on an average priced home in their area. This compares to under 60% across the North East, North West and Yorkshire and the Humber.
  • The introduction of incentives such as Help to Buy, have undoubtedly proved beneficial for many first-time buyers. Nearly 170,000 have benefitted from a Help to Buy equity loan since its introduction in 2013. Similarly, over 69,000 first-time buyer households have saved on average £2,300 each thanks to the first-time buyer stamp duty tax relief announced in the 2017 Budget.
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CHOCOLATE BOX PROPERTY

  • There is little else more quintessentially British than the chocolate box cottage. Bringing up idyllic images of rambling roses framing the doorway, thatched roofs, exposed beams and open fires, an escape to a rural retreat is the aspiration of many.
  • We have taken the opportunity during this National Chocolate Week to delve further into this market and the buyers who have made this dream their reality this year.
  • So far in 2018, there have been 2,100 country cottages sold in rural locations across England and Wales. The South of the country dominates, with 46% of sales but a fifth were in the Midlands and 15% in the East. The remaining 19% were spread across the North, Yorkshire and the Humber and Wales.
  • Unsurprisingly, buyers are prepared to pay a premium for a rural idyll. Chocolate box cottages sold this year for an average of £364 per square foot. This is 33% higher than the average price paid for all homes across rural locations.
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HOW LONG DOES IT TAKE TO SELL?

  • To date in 2018 properties have taken an average of two months to sell, according to data produced by Rightmove.
  • How long a property takes to sell is dependent on a whole range of factors – price, location, condition and time of year to name but a few, but despite challenging market conditions in many areas, nationally this figure is just one day longer than last year and is 10 days shorter than four years ago.
  • There are of course regional differences, at present properties are selling quickest across the Midlands – 49 days in the West Midlands and 54 in the East Midlands, while properties across London and the North East are taking longer to sell.

 

 

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What do homebuyers in Reddish really look for?

If you have ever sold your home, you will be all too familiar with the pressure to make the property look tip-top in time for a viewing. Your home must appeal to the most likely type of person to buy it, so it’s vital to understand a bit about the demand profile in your area. The chart above shows the demographic profile of our part of the world.

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WORKING FROM HOME

  • Working from home is increasingly popular, with almost a third of UK employees who use computers for their job, working remotely either every day or at least once a week. Those over 45 are most likely to work from home every day or almost every day.
  • Remote working has the potential to alter the interior of our homes. Will there be a premium for new homes with built-in office space? Home-owners already weigh-up the costs and benefits of converting bedrooms and extending upwards or outwards to create work space.
  • Homes in areas with superfast broadband are already in high demand. A recent poll found that 55% of UK house buyers would reject their ideal house if speeds were below 100 Mbps, with many willing to pay a premium.
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BACK TO SCHOOL

  • The new school year is underway for over 10 million children across England and Wales and school catchments rate highly for many choosing a home. How much more are home buyers prepared to pay to live close to an Ofsted rated outstanding school?
  • An analysis of property sales across England and Wales (excluding London) over the last year reveals a 10% price premium associated to homes close to an outstanding primary school and 17% price premium associated to an outstanding secondary school.
  • Properties located within one mile of an outstanding primary school sold for, on average, £22,686 more than properties within one mile of other schools, the price premium for secondary schools was £37,558.
  • Detached houses attract the largest price premium, with buyers here having to find an extra £90,000+ to live within one mile of an outstanding school.
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MORTGAGE DEBT: A REGIONAL BREAKDOWN

  • £873 billion – the total value of mortgage debt across England, according to the latest data released by UK Finance. That equates to just over £130,000 for every owner occupier mortgaged household across England.
  • The level of mortgage debt is rising, up 2% on a year ago, and 8% higher than four years ago. That’s not surprising given stretched affordability and the increasing number of longer term mortgages. Over half of all first-time buyer mortgages are issued for a period of 30 years or more according to the 2017/18 English Housing Survey, up from just 40% in 2015/16.
  • The level of debt per household is highest across the capital, where property prices are close to twice the England average. Less than half of all households across London are owner occupiers, just 22% of households are owner occupiers with a mortgage. This compares to 65% and 30% respectively across the rest of England.
  • To date in 2018, 95% of all new mortgages issued for new homes and remortgages have been on fixed rate deals. While the average interest rate has increased slightly, from 2.09% in January to 2.2% in May, this remains low compared to historic standards and any interest rate rise is unlikely to cause significant waves across the market.
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WHY DO EXISTING HOME OWNERS MOVE HOUSE?

  • There are 14.4 million households across England who own their own home, either outright or with a mortgage. This is 63% of all households.
  • Of these, the latest results from the Survey of English Housing estimate that 576,000 (4%) are planning to move within the next six months.
  • Moving up the ladder to a larger home is the primary motivation for existing owners, although not for those who own their home outright. Almost a third of those who own outright are looking to downsize.
  • As the new school year gets underway shortly, moving home to be in particular school catchment areas is a motivation for almost 10% of owners with a mortgage.
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Commuting distances

Measuring commuting distance might seem a little obscure but it actually offers a particularly good insight into the character of any local housing market. For example, commuter towns tend to really come alive at the weekends but are quieter in the week. Areas where most people work locally will have a stronger community feel day-to-day.

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