Monday , August 2 2021

The UK reached a record number of homes sold per month | The housing market

The number of changing homes in the UK rose to a record high in June, with 213,120 sales registered at HMRC.

Prior to the change in stamp duty rules, the busiest activity in England, Wales and Northern Ireland was the busiest month since the figures were first released in April 2005, during the housing boom that led to the economic collapse.

HMRC said the chapters “took into account the significant impact of taxpayer prevention measures” as buyers take the trade forward to take advantage of government policies.

The non-seasonally adjusted figure, based on estimates, was over 200,000 for the first time.

In addition to the figures for the previous two months, the first quarter of the new financial year was the busiest since the third quarter of 2007, with a total of 428,620 registered sales.

The stamp duty exemption was introduced in the UK in July last year, when the housing market was already recovering after the initial lock-in.

In England and Northern Ireland, the tax was scrapped on the first £ 500,000 on purchases, while in Scotland and Wales the threshold was moved to £ 250,000.

The extension of the original deadline of 31 March, with the exception of Scotland, meant that buyers had until the end of June to take advantage of the full break. In England and Northern Ireland, it will be completely decommissioned at the end of September.

Paul Stockwell, commercial director at Gatehouse Bank, said the June record is likely to last a long time as it reflects “a complete storm of demand backed by blocked buyers looking for more space and the introduction of significant tax savings”.

However, commentators said they did not expect the market to slow down completely.

Mortgage rates are at record lows, and the UK’s largest construction community, Nationwide, is today embarking on its first five-year fixed-rate contract of less than 1 per cent, and buyers still appear to be moving to larger homes.

Iain McKenzie, chief executive of real estate guilds, said: “Much of last month’s rise is due to last-minute looting to get the most out of the stamp duty holiday, but the holiday isn’t over yet and we can still see a boom in areas under £ 250,000.”

He added: “Demand for houses still exceeds supply tremendously, and members of our real estate agent see a living memory of the smallest properties available by branch.

“Due to the scarcity of the housing stock and the lower level of stamp duty leave, there are no signs of a slowdown in prices soon.”

The housing boom was also seen at the forefront of the property market, with people buying more than £ 5 million + homes in London in their first year than they have bought since 2014.

Data from the Savills estate agent showed that in the first six months of 2021, 237 sales were recorded for more than £ 5 million, 59% more than in the first half of 2020, when sales fell after the first closing, and 61% more than in the same period in 2019.

The value of trades was £ 2.3 billion, 41% higher than in the first half of 2020. It was the highest number and value of transactions since seven years ago there was a rush to hit previous stamp duty changes.

Domestic shoppers and international shoppers already living in London boosted sales, Savills said, with many looking for larger homes and gardens to enjoy more space after locks. In particular, operations focused on the £ 5-10 million price range, which recorded 179 transactions, 72% more than 104 sales last year.

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Sales of more than £ 10 million were roughly the same as in the first half of 2019. Homes worth this are often bought by foreign buyers who may not have been able to travel to the UK.

“The lack of foreign buyers has slowed the recovery in key parts of the London market, especially the top central postcodes, where prices remain around 20% below their peak,” said Frances Clacy, a housing analyst at Savills.

“Houses have remained the best performers as buyers strive to grow, but the steady market is still lagging behind due to international travel restrictions. However, demand from those who have not been able to travel suggests that demand is likely to balance when international buyers get to visit the capital again.”

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