UK property market bottomed after stamp duty relief ended
The end of a watered-down tax break on home sales has caused the housing market to dip, official figures released today.
Research by HMRC found that property sales fell about 52% over the past month, falling to 76,930 in October, from 160,220 in September.
The looming end of the tapered stamp duty holiday in October prompted potential buyers to rush to buy homes to capitalize on the financial benefits of the relief before it ends.
Nick Leeming, President of Jackson-Stops, said, “The stamp duty holiday is shaping today’s numbers a lot.
“We saw a slower market in October when it was juxtaposed with trading volume in September, which represented a buyer acting at breakneck speed to capitalize on the end of the SDLT vacation. “
Experts suggested that the high real estate transactions were primarily driven by the Covid-19 crisis which resulted in a sudden shift in Britons’ housing preferences, causing demand for larger homes with access to green spaces to rise in arrow.
However, the housing market’s bottom in the first month, when no stamp duty relief was applied, suggests that these valuations could be misplaced.
Chris Sykes, Managing Partner of Private Finance, said City AM that a “lack of housing stock” triggered a sharp drop in home sales.
Buyers struggle to find suitable homes in the market due to a lack of variety, forcing potential buyers to wait until more inventory becomes available.
Homeowners are also reluctant to list their properties due to the limited choice to buy once the transaction is complete.
Soaring house prices are also dissuading some Britons from buying homes now, instead preferring to wait for the market to cool down.
Sykes said City AM a client recently made a £ 1.1million offer for a property listed at £ 1.4million after seeing that it had recently been listed for a lower price and that he was’ laughing out of the room “.
UK house prices are 9.9% higher than a year ago, according to the nationwide construction company.