Her Majesties Revenue and Customs (HMRC) have reported that there were 466,000 home sales in the first six months of 2012.
The data released by HMRC shows that there were 10% more residential property sales, in the first 3 months of the year, than in the same period of 2011 when there were 425,000 residential property sales, and 2% higher than in the second half of 2011 when there were 458,000 residential property sales.
The increase in residential property sales had been widely attributed to the end of the stamp duty holiday in March 2012, and now the HMRC data has confirmed it.
Until the end of March this year, first-time buyers purchasing property under £250,000 were not required pay the stamp duty tax.
The residential property sales figures support the HMRC data, with sales dipping 11% between the first and second quarter of the year.
Many property pundits had predicted a flurry of activity from first-time buyers before the end of the stamp duty holiday in March, but the increase in the amount of First Time Buyers taking positive action and purchasing property was greater than many expected.
The notable increase in prospective first-time buyers in the first three months of this year, eased drastically following the closing date for the stamp duty holiday and now residential property sales interest from first time buyers has waned compared to 10 years ago due to the lack of affordable mortgage finance available to them and the large amount of money needed to be able to put down a deposit on residential property, often up to 50% of the property’s purchase price.
First Time Buyers, who have finance in place, are like property investors, they want to put their money in and invest in property regardless of stamp duty or any other form of tax.
It’s almost as if they know that there is money to be made from property
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