Hamptons International, one of the UK’s premier residential estate agencies has announced a significant rise in new housing stock coming on to the market during April 2010, one of the key indicators that house prices could be set to stabilise for the remainder of the year.
Hamptons International saw new instructions increase by a third (32 per cent¹ during April 2010, in spite of an expected slowdown in the market ahead of the General Election. The figures from Hamptons International suggest that political uncertainty has not had an impact on market confidence.
The increase in stock arrives ahead of an expected flood of second homes coming onto the market as homeowners try to avoid the expected increase in capital gains tax for non-business assets.
Hamptons International can report the following activity in the housing market during April 2010:
- New applicant registrations up 14 per cent in April 2010 as increasing numbers of potential buyers enter the market
- Average sales price achieved across the south of the UK in April 2010 was 14 per cent higher than in April 2009
- There was no slowdown in market activity in the run-up to General Election on May 6th and Hamptons undertook 33 per cent more market appraisals and took on 32 per cent more instructions than in April 2009
Marc Goldberg, Head of Sales at Hamptons International said, “March 2010 was a very strong month for property sales in the south, but April has been equally busy in terms of new instructions and market appraisals. This rise in new instructions is a good indicator that more and more properties are now coming onto the market, suggesting that despite the recent political turbulence, the outlook for property prices for the remainder of 2010 is stable.
“If the increase in capital gains tax for non-business assets announced by the new coalition government is instigated directly following the emergency budget, we expect a sharp increase in housing stock as second homeowners look to avoid a growing tax bill. Although this would be a welcome boost to stock levels, sharp increases in housing stock could destabilise property prices as supply far outweighs demand for a period of time.
In line with national trends, prices have risen over the course of the year, with average sales prices achieved in April 2010 by Hamptons up 14 per cent on last year.
Marc concludes: “Depending on the outcome of the proposed increase to capital gains tax increases in the emergency budget, the signs for the remainder of 2010 point towards a period of stability in the property market. Without the slowdown predicted by many ahead of the General Election we are confident that at this busy time of year, increasing stock levels will help to maintain the recovery we have seen to date in the market.”
For media enquiries please contact: Kate Tulip, Press Officer, Hamptons International, 020 7758 8405 tulipk@hamptons-int.com / Twitter: twitter.com/HamptonsPR