February 2012 News

First-time buyers now need to act quickly if they wish to beat the March cut-off

21st February 2012

Spring has arrived early in the UK housing market, particularly in Leicestershire!

Consumer confidence has returned in abundance at the start of 2012, as reported by the Agency Express Property Activity Index, with January seeing unprecedented growth month on month. Data shows the number of new homes on the market has risen 12.4 per cent on December, the second largest growth figure reported since records began in 2007.

This upturn also reflects on the number of properties being sold, which have increased 4.2 per cent compared to January last year.

Not only are these figures encouraging but they support the fact that the East Midlands was the only region other than London, to sustain an annual growth on housing prices year on year.

All in all, estate agents are reporting one of the best Januarys since2007.

Why is this? Traditionally January is one of the strongest months for the property market but there are other possible underlying reasons.

These include people considering “the New Year – New start scenario”, mild weather and longer days. With spring around the corner, families and investors alike keen to match their purchase with the next academic year, low interest rates and the stamp duty incentives pre-March 24 for first-time buyers offering a window of opportunity.

First-time buyers now need to act quickly if they wish to beat the March cut-off. Since March 25, 2010, there has been no tax payable on first time buyers purchases up to £250.000. This comes to an end on March 24 and there­ after you will have to pay on per cent on a home purchase of £125,000 to £250,000. You need to act quickly to beat the deadline and if a chain is involved make all parties aware of the tax holiday. Good communication with your solicitor is key as you must have completed by March 24 to be eligible for this incentive.

Post-March, we should see the first time buyer market kick-start as interest rates are still low. With property prices more affordable than ever, lenders will continue to be creative with the packages they have to offer and consumers feel more optimistic for the year ahead.

This is a great time to consider a move and the best time of year to sell. You can be confident you are selling at a time that gives you the greatest chance of achieving the best possible price in the shortest amount time. So get moving!

Joanna Clark
Sales manager and residential valuer
Barkers Estate Agents, Leicester