Clearview National November 2016 - Issue 180 | Page 82

BUSINESSNEWS

Domestic
property sees
massive falls in
transactions
and prices
»»ACCORDING TO Q2
2016 data released from
HM Land Registry recently,
residential markets across the
UK were already suffering,
pre-Brexit. The only exception
was Prime Central London’s
(PCL’s) mainstream private
rented sector, where quarterly
price growth was robust
(+6.6%) despite recent tax
changes and global economic
uncertainty.
Demonstrating the distorting
effect of recent changes in tax
legislation, sales volumes fell
dramatically everywhere in
Q2 following a rush of activity
during the previous quarter, as
buyers sought to be beat April’s
3% Additional Rate Stamp
Duty (ARSD) deadline.
The UK’s domestic markets
witnessed dramatic falls in
prices and transactions in Q2,
despite record low mortgage
rates and Government efforts
to decrease basic rate Stamp
Duty. In Greater London as a
whole, average prices fell 7%
over Q1 to £558,082 with a
corresponding 44.5% decrease
in sales.
Across the rest of the country,
average prices fell 4.5% over
Q1 to £268,713 with only
155,895 sales taking place, a
30% decrease over Q1 and the
lowest quarterly number of sales
on land registry record. This is
down from a pre-credit crunch
average of 245,173.

Manufacturing
output continues
expanding
»»MANUFACTURING

Naomi Heaton, CEO of
London Central Portfolio
(LCP), who analysed the data,
comments: “Whilst we have
seen falls in mortgage rates
and reductions in basic rate
stamp duty for the majority of
the market, the surge in prices
experienced over the last few years
in Greater London has stuttered.
The market has suffered this year
in the face of the new additional
3% Stamp Duty and a brewing
new build market crisis which has
seen a 43% fall in sales compared
with last year.
“Likewise, registering the
lowest number of sales since
Land Registry records began in
1996, the fall in sales in England
and Wales is very concerning,
particularly given additional
Government schemes to augment
first time buyer numbers. With
harsher salary caps on mortgage
lending impeding buyers and
Brexit uncertainty affecting
sentiment, growth in both these
domestic markets is expected to
slow further across the rest of
the year as buyers battle with
the new normal.”

82 » N OV 2016 » CL EARVI E W- UK . C O M

output continues to expand
at a solid rate, according to
the latest Confederation of
British Industry (CBI) monthly
Industrial Trends Survey.
The survey of 481 firms
found that manufacturers are
expecting the rate of production
to accelerate rapidly, with 11 of
the 18 sub-sectors upgrading
their expectations for output
over the next three months.
Meanwhile, export order
books weakened slightly, but
remained comfortably above
their long-run average. Chemical
firms experienced the sharpest
drop in overseas demand,
contrasting with the motor
vehicle and transport sector,
which reported the greatest
improvement. Total orders
remained unchanged from the
previous month, well above
average levels.
Companies’ near-term
expectations for prices eased,
with a majority of respondents
anticipating no change over the
next three months.
Stock adequacy climbed to
the highest level since June
2013, with half of the change in

the balance accounted for by
chemical manufacturers, who
also scaled back their output
the most out of the survey
respondents.
Rain Newton-Smith, CBI
Chief Economist, said: “It’s good
to see that manufacturers are
enjoying a lingering summer with
output running at a strong pace
and manufacturers’ order books
remaining solid, particularly
amongst the food, drink and
motor vehicles sectors.
“Our members tell us and
our surveys show that the
fall in sterling has boosted
international competitiveness
for many businesses, with export
order books remaining well
above average in September,
despite weakening slightly.
“But there are plenty
of challenges ahead for
manufacturers as we adjust to
a new relationship with the
EU and the rest of the world.
That’s why we want to see a
focus on promoting investment
and innovation in the Autumn
Statement to ensure our makers
are able to put their best foot
forward and adjust to new
opportunities.”