The number of homes changing hands
reached its highest level in 2014 since before the credit crisis struck,
recent Government figures showed.
More than 1.2 million sales were completed on homes costing more than £40,000 across Britain during the year, according to HM Revenue & Customs.
The figure was the highest since 2007, when 1.6 million sales were recorded, and significantly above the trough of just 858,350 transactions seen in 2009.
It was the third consecutive year in which sales have risen, as the recovering economy, coupled with improving mortgage availability tempted more people to buy a new home.
The property market ended the year on a high note, with completions rising to 106,950 in December, up from 100,420 in November, but still down on the recent peak of 114,790 reached in October.
House prices rose by around 8 per cent in 2014, but there were signs of the market cooling during the latter part of the year.
In its latest Agents’ Summary of Business Conditions report, the Bank of England said activity in the housing market had remained subdued compared with levels a year earlier.
Estate agents attributed the slowdown to a combination of the earlier release of pent-up demand having run its course, and a shortage of properties for sale.
There was also a feeling that in London and the south east, high house prices were starting to deter potential buyers.
Going forward, they expect the recent changes to Stamp Duty to provide “modest” support to the housing market.
House builders provided mixed reports on the level of demand for new homes, but overall, reservations were generally lower than they had been a year earlier.
Meanwhile, Government data showed that the recovery in real wages continued to gather pace in November, while the Bank of England’s Monetary Policy Committee voted unanimously to keep interest rates on hold at their record low of 0.5 per cent in January.
Average earnings rose at an annual rate of 2 per cent in November, the third month in which wage growth has outpaced inflation.
The data is good news for the property market, as recent strong house price growth had led to stretched affordability in many areas of the country.
The fact that two members of the MPC have also withdrawn their previous calls for interest rates to be increased, reinforces the view that the first hike in the Bank Rate is unlikely for some time.
Read full story here
More than 1.2 million sales were completed on homes costing more than £40,000 across Britain during the year, according to HM Revenue & Customs.
The figure was the highest since 2007, when 1.6 million sales were recorded, and significantly above the trough of just 858,350 transactions seen in 2009.
It was the third consecutive year in which sales have risen, as the recovering economy, coupled with improving mortgage availability tempted more people to buy a new home.
The property market ended the year on a high note, with completions rising to 106,950 in December, up from 100,420 in November, but still down on the recent peak of 114,790 reached in October.
House prices rose by around 8 per cent in 2014, but there were signs of the market cooling during the latter part of the year.
In its latest Agents’ Summary of Business Conditions report, the Bank of England said activity in the housing market had remained subdued compared with levels a year earlier.
Estate agents attributed the slowdown to a combination of the earlier release of pent-up demand having run its course, and a shortage of properties for sale.
There was also a feeling that in London and the south east, high house prices were starting to deter potential buyers.
Going forward, they expect the recent changes to Stamp Duty to provide “modest” support to the housing market.
House builders provided mixed reports on the level of demand for new homes, but overall, reservations were generally lower than they had been a year earlier.
Meanwhile, Government data showed that the recovery in real wages continued to gather pace in November, while the Bank of England’s Monetary Policy Committee voted unanimously to keep interest rates on hold at their record low of 0.5 per cent in January.
Average earnings rose at an annual rate of 2 per cent in November, the third month in which wage growth has outpaced inflation.
The data is good news for the property market, as recent strong house price growth had led to stretched affordability in many areas of the country.
The fact that two members of the MPC have also withdrawn their previous calls for interest rates to be increased, reinforces the view that the first hike in the Bank Rate is unlikely for some time.
Read full story here
No comments:
Post a Comment