It’s only 7 days to go until the stamp duty hike takes effect. Most of the investors who are buying are now bald having pulled out their hair and are doing everything to get the deal done so they don’t have to pay the excess stamp duty. Next week will be our busiest week in completions since the boom of 2007 and could actually be our busiest week ever! We’re all wondering what’s going to happen after the 1st April but due to the shortage of supply most investors will probably have to take the new tax on the chin. They may find they will not have the chance to negotiate around the tax making offers less than the asking price as the shortage of properties coming to the market still continues and is set to be like this for the majority of 2016.
There are definitely more first time buyers looking this year, many of them probably coming to the conclusion that with the increase in rental levels it would be more cost effective to buy and get on the ladder. Parents still continue to be the backbone of these purchases assisting with deposits and more first time buyers will come to the market place if lenders are prepared to be more flexible on the minimum deposit required.
Rental market still continues to be strong although there are indications that rental levels might be reaching their peak, after all, it’s all down to affordability. There’s still a shortage of supply and it’s going to be at least 18 months – 2 years before all the new builds stock in Manchester, presently under construction, is available.
Watch this space!