Property sales increased over Britain by 14% last year, reaching 1.22 million, the highest figure since 2007. This is a long way from the nadir of the UK property market in 2009 when only 858,000 estates were purchased. This was the result of the 2008 banking crisis which ensured a market crisis and mortgage lenders withdrawing their attractive offers.
The numbers for last year were released by the HM Revenue and Customs bureau and show that sales rose in every region of the United Kingdom.
This is despite the fact that the rate of increase in sales dropped towards the end of 2014, whilst the rate at which the price of property increased also slightly fell. Many experts predict this trend will continue throughout 2015.
In fact, mortgage lenders have predicted that the sales for 2015 may be reduced marginally, arriving at around 1.18 million.
In reference to property sales and mortgage lending, the HM Revenue and Customs stated: ìSince December 2008, there has been a slow but steady upward trend in the seasonally adjusted count. This trend grew at a faster rate between April 2013 and February 2014; however since then the rate has declined slightly.î
The slowdown in property sales from the last few months of 2014 has been further represented by the slowing of mortgage approvals. The Bank of England have revealed figures which show that mortgage approvals have been dropping slowly since June of last year.
The Royal Institute of Chartered Surveyors added that the figures for potential buyers entering the market have in fact fallen for six months consecutively.
In recent weeks, home builders such as Bellway and Persimmon stated that the property market was moving back into a ìmore stable rateî because of dropping mortgage approval statistics and the decelerating rise of house prices.
There are a number of factors that could affect this housing market this year. Some experts have forecasted the general election as a potential pothole in the road, with the political uncertainty driving up the price for lenders on the financial markets, which would subsequently push up the mortgage lending price.
The chief executive of SPF Private Clients, Mark Harris, declared there expectation that ìuncertainty around the general election [would] keep the housing market fairly subdued until after May.î
Moreover, if Labour were to be successful then there proposed ìmansion taxî, applicable to all homes valued at more than £2 million, would have to take into account the extra charge when purchasing a property.
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