The data by UK Finance reveal the number of first-time buyers increased to 30,720 in May at the rate of 0.5% more than the same month of the last year. The number of re-mortgages with additional borrowing increased with a rate of 19.8%. The director of UK Finance Shaun Church said: “The buyers are taking additional loans on existing property for saving money in stamp duty.” Stamp duty continues to hinder the property market where the stock is low and it may be necessary to lower the stamp duty liabilities to promote buyers and encourage buying and selling. The report found the average age of buyers was 32 and disparity in London property continues to promote eastward migration of occupiers.
Growing London markets
One of the strongest markets in London is Kingston where the asking price increased 3.7 percent y-o-y and other regions showing growth, as per the Rightmove data, were Bromley and Waltham Forest.
Some of the central London affluent sellers do not wish to sell and are ready to wait for the right time to get the right price for their property, while, they can earn by renting out their property. Rightmove report finds the price across the UK fell 0.2 percent from June to July, and London continues to see growth and recovery in transactions due to growing demand from the international buyers and weakening sterling. The UK buyers expect Brexit to sort in one way or the other, and they are no more worried about the unstable economy or the political situation, which continues to appear secure.
Office rents to increase in the second half of 2020
In the conditions of no-hard Brexit - office rents can increase in the second part of 2020, while rental growth may be low due to the higher availability of vacant property in London. The price in West End, South Bank markets and Midtown are expected to gain, and in areas with low vacancy like Mayfair, Southwark, Fitzrovia and Soho, the rent may be close to £5 per square foot per annum.
European economic growth hit homebuilders
Britain's property markets face a decline in growth due to a slowdown in the European economy where the homebuyers are holding house prices amidst the chaotic conditions. The homebuilders like Bovis said the building expenses are growing, and Taylor Wimpey said the rise in the cost of building material hit profits. Some builders are adopting alternative methods to cut costs like changing the design and simplifying the range, or choosing low-cost locations offering affordable homes to the buyers.
Average house price in Wales grew at the rate of 4.1% over last year
The Principality Building Society shows the highest annual rate of the home price grew 4.1% in Wales, and the growth in the property price in the last quarter was modest at 0.1%. The low cost of borrowing and labor market strength continues to support growth.
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