Sales market supported by Brexit
Posted on Nov 04, 2019 | in Blog
We issued a press release last month on the fact that we’ve hit £250m redemptions since launching in 2017, with £125m returned to us in 2019 alone.
What we found interesting when looking at the data is that a significant 40% of those redemptions have been by way of sale, and that 90% of those with a sale as their intended exit managed to achieve it.
Given the level of uncertainty created by Brexit, and belief in many corners that prospective buyers are sitting on their hands and refusing to play ball, this is further proof that the market is actually carrying on regardless. It’s by no means early 2007 in terms of transaction levels but there is a lot more buying activity out there than many think.
The latest stamp duty collections data from HMRC issued last week offered further proof of how Brexit has helped drive transactions rather than subdue them. In the third quarter of 2019, stamp duty receipts collected by the Government rose by 20%, driven by 305,100 transactions compared to 268,400 in Q2.
This was a result of people wanting to get into their new homes and locked into an ultra-low mortgage rate before Brexit, in whatever form it eventually happens (if it even happens), takes place.
The fact that employment levels remain at near record highs was said to be another key support, giving people the confidence to buy amid the political mayhem.
For property investors and developers, this is clearly very positive news. It goes without saying that you need to be investing in the right properties in the right areas — and putting them on the market at the right price when you come to sell — but if you are then there’s a very good chance you will shift your units far quicker than you think.
Many onlookers have written the market off as static and on its knees. Our own experience, reflecting that of HMRC, is the exact opposite. There is life in the market yet.
More in this section