Impending stamp duty increase drives demand in North West housing market

The North West’s housing market saw a sharp rise in demand last month, according to new figures.

Data compiled by the Royal Institution of Chartered Surveyors, in its latest RICS UK Residential Market Survey, showed that 40% of chartered surveyors in the region reported an increase in enquiries from new buyers in December, compared to 19% the month previous.

The rise has been attributed to buy-to-let investors rushing to snap up properties ahead of the stamp duty hike in April, when they will be required to pay 3% more than residential buyers.

A high proportion of North West chartered surveyors cited a lack of new properties as a continuing issue, despite new data indicating that Manchester has the highest number of residential units currently in development since 2008.

Jonathan Clayton, a fellow of RICS, works at Blackpool-based chartered surveyors Bentley Higgs & Co. He said: “A high proportion of our sales are to buy-to-let landlords, and although the poor weather over the past month affected sales activity, we’re anticipating a buoyant first half of the year.

“Buyer enquiries are continuing to rise and buy-to-let-landlords are being encouraged by the chance to beat the 3% stamp duty surcharge.”

Jonathan added: “However, we still need to see more properties, across all price ranges, coming on to the market to keep up with increasing demand.”

The survey also found that the majority of North West buyers are happy with the region’s house prices, with 92% saying they believe homes in their area offer good value for money. Conversely, just 62% of South East respondents said the same.

RICS’ chief economist, Simon Rubinsohn, commented: “The housing market has experienced an unusually buoyant December.

“Those in the industry have been speculating that this is the result of the Chancellor’s announcement last November, with potential buy-to-let investors looking to pick up properties before the increased stamp duty levy comes into force next April.”

He concluded: “If that is the case, then we can expect to see the housing market, in all UK regions, heating up further over the next few months.”