The House Price Index readings for October have shown that the north-west and the West Midland property prices are in much better standing than other regions.
With lower income tax reliefs and increasing landlord stamp duties have seen properties with two bedrooms or lower fall by 0.1% last month, these property types traditionally known to attract both first-time buyers and buy-to-let investors.
“Landlords are clearly buying far fewer properties and that leaves a gap in the market for first-time buyers,” said Rightmove director Miles Shipside. “While landlords were hit with a 3% stamp duty surcharge on property purchases back in April 2016, in contrast most first-time buyers were effectively awarded stamp-duty-free status in November 2017.
“The fall in prices at the bottom of the market during what is a traditional busier time means that those keen to sell need to price accordingly, which gives an opportunity for those stamp-duty-free first-time buyers to negotiate harder.
“With the government using the tax system to try and help first-time buyers while deterring out-of-favour landlords, prices in this sector have been subdued as intended. That gives aspiring first-time buyers an autumn opportunity to negotiate a favourable deal.”
Regional figures are rising up
West Midland property prices have risen by 5.5% over the year, Rightmove survey’s largest annual rate change ever. Clearly showing that the properties in the region had an average selling of 50 days, being beaten by 44 days in Scotland who currently have the fastest in the UK.
Over the past 12 months, the north-west has seen an increase in value by 3.3%, whereas everywhere else by only 0.9%. In Greater London they actually had a decrease of 1.1%
Overall everything in the one or two-bedroom market remains stable, with the chance of new procedures in the Budget on 29th October could possibly help expands the outlook.
Mr Shipside concluded, “If the Chancellor’s budget encourages more landlords to sell to long-term tenants for rumoured capital gains tax relief, then landlords who are looking to sell and renters who aspire to become first-time buyers could work together for their mutual benefit.”