New data released by Nested has revealed that the property market in England and Wales has been majorly damaged in the year since the Government introduced reforms to Stamp Duty.
The most recent Nested Market Efficiency Monitor, which looks at the health of the property market every quarter using Land Registry and Zoopla data, shows transactions slipped across the country.
The monitor reveals that transactions across the country fell year-on-year by 19% across England and Wales. This figure rises to as much as 35% in London. This fall has been largely attributed to the increase in Stamp Duty, which saw many investors leave the market.
This slowdown has been particularly evident at the top end of the market, where the majority of listed properties valued over £500,000 are unsold. This is in comparison to properties valued under £500,000, of which 41% are under offer.
In the capital, there is a profound East/West split. In the higher valued West, only 15.4% properties are under offer. The East however remains a hotspot for first-time buyers and investors, with the number of properties under offer here higher at 28%.
Further analysis from the report shows that 90% of sellers in London fail to receive an acceptable offer for their property during the first 30 days of it coming onto the market.
Of those properties coming onto the market in the last 30 days in Britain, only 15% have received an offer that was accepted. In London, this situation is worse, with only 10% of properties going under offer within the opening 30 days.
This analysis highlights the problem facing sellers across the UK and also shows that people looking to sell a high-value property quickly are largely disappointed.
It certainly looks as though the higher end of the market has been most impacted to the alterations to Stamp Duty Land Tax.
Matt Robinson, CEO of Nested, observed: ‘The evidence is now crystal clear – the government’s SDLT reforms shattered the property market. In the twelve months since the 3% surcharge was introduced, national property transactions fell 19% across the country and a massive 35% in London. Anything above £500,000 outside of the capital just isn’t selling.’
‘Brexit hasn’t helped the situation but the data shows that the government’s stamp duty tinkering has stalled the market. This may have slowed rising house prices, but it has also stopped sales going through and has left many people stuck in their current property, unable to move up the ladder,’ he continued.
Concluding, Mr Robinson stated: ‘Policy-makers need to look at how the market functions and find ways to increase fluidity in the system. Everyone will gain if we can open the floodgates on the supply of properties and loosen up the market so it is easier and more cost effective for people to buy and sell.’