Property Transaction Volumes Break Records

UK residential property transactions have, as expected, beaten all previous records as home movers sought to take advantage of the June SDLT holiday deadline. 

Figures released this morning by HMRC show that property sales hit 213,120 in June (not seasonally adjusted), the highest monthly UK total since the introduction of these statistics in April 2005.

The June figures are also 21% higher than the original SDLT holiday deadline in March where there were 174,060 sales. and more than double the number in May 2021

From 30th June the tapering of the Stamp Duty holiday has moved into its next phase with the nil rate band for residential SDLT reduced to £250,000 until 30 September 2021, while in Wales the temporarily increased nil rate band to £250,000 for residential Land Transaction Tax (LTT) ended on 30 June 2021.

Commenting on the record numbers, Adam Forshaw, MD at ONP says:

“The figures out today provide the hard stats to confirm what all of us working through the last six months were well aware of – it has been a period of intense pressure on the conveyancing sector.

“The year-on-year increase of 216%, charting a course from the depths of lockdown in June 2020 to the peak of the stamp duty holiday rush at the end of June 2021, could not be a clearer illustration of the journey we’ve been on.

“While we expected the figures for June to outstrip all previous records (due to the significant impact of homebuyers forestalling activity), what we have seen since the cut off is that demand is still high.

“As yet we’ve not seen a significant drop off and in fact the re-mortgage market is showing real signs of strength.

“It is testament to the sheer hard work, professionalism and collaboration by all involved in the property industry over the last few months, that we have not seen the nightmare of transactions falling through or being renegotiated, with all the implications that has for homebuyers in their property chains.”

HMRC’s statistics follow the recent news about the record decline in property availability. On Monday Rightmove reported continuing high activity levels despite the passing of the deadline as prices continue to rise while there is low property stock or sale.

Iain McKenzie, CEO of The Guild of Property Professionals says Guild members have seen demand for houses continue to exceed supply by a huge margin, with some of the lowest properties available per branch in living memory.

“With such a scarcity of housing stock, and the continuing lower level of stamp duty holiday, there is no sign of prices slowing down any time soon.”

Meanwhile a report from the London  School of economics and the Family Building Society has identified a number of benefits to scrapping SDLT altogether, calling it a “poor tax.”

 

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