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Strong Start for UK’s Residential Market in 2016

The UK residential market had a strong start to 2016, following an increase in the number of buyers entering the buy-to-let market and the number of transactions completed, states a new report.

Autumn Statement 2014

The UK residential market had a strong start to 2016, following an increase in the number of buyers entering the buy-to-let market and the number of transactions completed, states a new report.

Estate agency and property service provider Connells Group released a new report analysing market activity in UK’s residential property sector over the first quarter of 2016 and found that the number of active buyers entering the market increased by 7% compared to Q1 2015.


The report confirms that the surge in transactional activity witnessed over the first quarter of 2016 was caused by investors in the sector rushing to complete their purchases ahead of new stamp duty changes that came to effect on April 1st. Consequently, this ‘increased in urgency’ has led to a rise in momentum within the market.


The increase in new applicants is said to further aid future buyers, with the number of applicants per instruction likely to level out in the long-term as price growth shows signs of steadying in Q2 2016, creating more opportunities for investors and first-time buyers alike.


The research also shows that Q1 2016 saw the rental sector acquire greater momentum, with more tenants on the hunt for available lets and landlords rushing to satisfy the increase in demand. This lead to a 21% increase in the number of new lets agreed between Q4 2015 and Q1 2016.


Looking at rental trends in the first three months of 2016, the report shows that rental growth across all regions has stabilised, but all signs indicate that the market is still experiencing ‘moderately strong growth’.


Commenting on the report, director of Connells Group, David Livesey, said: ‘This generally positive climate looks set to be maintained over the coming quarters, regardless of the result of the upcoming referendum, and with demand for housing continuing to outstrip supply, the outlook for the housing market remains positive.’

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