News

Market Update
HMRC has reported a fall in housing transactions particularly at the higher end, and official figures suggest it may be due to the changes in stamp duty. I think we could have all told them that last year when the stamp duty, now Land and Buildings Transaction Tax (LBTT), was raised quite considerably for any property over £325,000. Every time tax is put up, tax takes fall, yet successive Governments continue to make political statements rather than run the Country efficiently. As I suggested at the time, the lower end of the market, where there is no LBTT, house prices have gone up and the first time buyer has a bigger problem than before, not to mention the HMRC get no tax take. At the higher end transactions have fallen by almost a third leaving a big hole in the revenues income.  Between Jan and June 2014 there was 3,044 transactions over £1.5m, this year over the same period there was only 2,026.
Many I know will not care about over £1.5m, but the reality is if nothing is sold at the higher end, nobody can move up the ladder and nobody can get on the ladder at the lower end, so first time buyers are condemned to rent and the market stagnates.
Making it difficult for the top end to sell has the same effect as making it difficult for the lower end to buy.
Against that backdrop we are still selling, much quicker at the lower end, but still selling. The problem we all have now is lack of stock. Property simply isn’t coming to the market, limiting the choice for those who have sold, many of whom go into rental until something comes up. It is not just the first time buyers that are stuck in rent.
Many of our competitors are now switching more effort into their rental sector, rather than working harder at selling. Easy money I suppose.
We on the other hand have never looked for the easy route, we continue to be proactive in the middle to higher end and are selling.
We are constantly on the lookout for more stock, so if you are aware of someone coming to the market, or unhappy with their present arrangement, please give us a call.
Meanwhile inflation still holds at zero%, oil is still falling, and farmers are unhappy with the price of milk! That of course is another illustration of meddling with a market. ( with subsidies).
Bill Reid
01738237337