HMRC Figures Depicts Increase in October Sales

HMRC Statistics

As per HMRC statistics, on an unadjusted basis, the sale of completed property in October increased 12 per cent compared to the previous month, and the growth was 3.92 per cent y-o-y. [HMRC is Her Majesty's Revenue and Customs].

The data on completed property transactions found an increase in optimism and growth outside London. During the last quarter of the year, overseas buyers continued to invest to gain access to UK property. 

Singapore-based alternative asset manager - Elite Partner Capital which specialises in international assets, reported it would acquire one of the biggest private developers of UK Telereal Trillium. The current acquisition is believed to be a low-risk, profitable long-term deal where many global investors seek opportunities in such markets. 

Currently, the capital city and the South East regions are undergoing difficult conditions, but the overall market continues to grow where the property transactions are constantly gaining. 

Experts believe transactions in November and December will remain steady as the number of people registering to buy a home increased 37 per cent y-o-y. Compared to last year and the year before, the number of people seeking opportunities in real estate markets continues to grow. 

Some regions in the UK are returning to sustainable growth where East Dunbartonshire, Edinburgh, and East Renfrewshire are regions where the average price of the property is now over £250,000. 

Edinburg sale volume decreased in Q3 by 10.2 per cent due to a supply housing shortage, but East Dunbartonshire rose 9.7%, and East Renfrewshire grew 1.4%.  

Impact On Prices in Case of a Positive Brexit Agreement

Some believe if a positive Brexit deal is made, the demand will grow, leading to a rise in prices in 2019, where buyers and sellers can witness supercharged property markets in some areas. 

There are hopes in the property markets that the UK will depart with a positive deal, which could positively impact the market. Some sellers are holding on to their assets and will post for sale after a positive Brexit deal to get better prices. 

In the case of a strong deal, buyers' confidence will get an upward movement, and an increased number of transactions will take place as the demand from buyers will grow, leading to an increase in rates.  

Revenue Decreased in Q3

Government revenue through stamp duty fell in Q3 2018 by a tenth as per treasury reports, where the reduction in stamp duty for the first-time buyer has been a key reason for low revenue on sales. 

The HMRC claimed the revenue generated through property sales was £2.347 billion, and the number of properties that paid stamp duty fell to 279,500 from 302,700. 

Revenue from stamp duty had tripped in years since 2008-2009 to £9.3bn (2014-2015), while the forecasts by Office for Budget Responsibly claim the revenue for 2018-2019 may be £1 billion.
 
The new taxation rule benefited property in the lower price band, but the super-priced property (worth over £3m) will have to pay £273,750 in stamp duty. HMRC said 58,000 first-time buyers benefited from the relief and saved over £142m in Q3. 

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