Residential transactions UK house prices UK Property ladder lockdown
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The provisional seasonally adjusted estimate of UK residential transactions in June 2021 was 198,240, 219.1% higher than June 2020, according to HM Revenue & Customs (HMRC).

On a monthly basis, this figure was up 74.1%.

The provisional seasonally adjusted estimate of UK non-residential transactions in June 2021 was 10,850, 58.7% higher than June 2020 and 6.8% higher than May 2021.

Looking to the provisional non-seasonally adjusted estimate of UK residential transactions, this was noted at 213,120, 216.1% higher than June 2020 and 108.5% higher than May 2021.

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The provisional non-seasonally adjusted estimate of UK non-residential transactions in June 2021 is 11,610, 61.1% higher than June 2020 and 30.3% higher than May 2021.

Further to this, the provisional non-seasonally adjusted estimate for UK residential transactions in June 2021 of 213,120 was the highest monthly UK total since the introduction of these statistics in April 2005.

Tomer Aboody said: “Looking at the highest levels of transactions since 2005, when data was first captured, the second quarter has seen properties flying off the shelves as buyers pay premium prices due to the lack of supply.

“But with mortgage interest rates at record lows, and some at sub 1%, borrowers are realising this is the opportune moment to stretch themselves in order to buy their dream home.

“This trend is likely to continue for a while yet, while money remains cheap, resulting in prices rising further due to lack of supply.

“Will the Chancellor look at possibly reformatting stamp duty so that downsizers don’t have to pay it or face a significant reduction?

“This would have the desired result of more properties coming to market, keeping a lid on prices while further boosting the wider economy.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “As always, it is transactions rather than the more volatile prices which are a better measure of housing market health.

“These figures clearly illustrate the frenzied rush to the finishing line for buyers to take advantage before the stamp duty holiday drew to a close.

“However, activity has reduced since, particularly in London where the savings were greatest.

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“Early signs are that sales will be down significantly but we have noticed nearly all of our transactions are continuing with very few renegotiations.

“This leads us to believe prices will not be markedly different over the next few months.”

Conor Murphy said: “The end of June brought closure to the first phase of the stamp duty holiday and one of the busiest periods ever witnessed by the property market.

“Today’s fantastic findings are testament to the success of the scheme in sparking further interest in an already busy market and positioning the industry as a key driver in the UK’s economic recovery.

“We have championed the stamp duty holiday as ‘the great equaliser’ since its introduction in July 2020 and will continue to do so long after its conclusion in two months’ time.

“The tax break has reduced the amount of upfront capital needed to get on the property ladder, made homeownership a more viable goal for thousands and provided a much-needed form of economic relief in a period where finances are increasingly strained.

“However, with brokers, conveyancers and lenders all juggling sky-high demand, it’s important that advisors manage client expectations and assess how mortgage tech can be used to streamline transactions before the holiday draws to an end in just 10 weeks’ time.

“Mortgage tech can act as an additional team member if used correctly.

“There’s no better time than today to see how features like one-click DIPs, task automation and digital ID verification can remove the legwork in your business, leaving you with more time to focus on what truly matters: providing clients with expert advice.”

By Jake Carter

Source: Mortgage Introducer

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