- Total Stamp Duty Land Tax receipts in Q2 2020 were 41% lower than in Q1 2020 and 43% lower than in Q2 2019.1
- House prices have increased by 1.5% yoy in July 2020 versus the -0.1% decline which was seen in June 2020. 2
Andy Sommerville, Director of Search Acumen, comments:
“The latest Stamp Duty data reveals the severe impact the coronavirus pandemic and resulting lockdown measures had on the UK property market.
“The fall in Stamp Duty Tax receipts over the last quarter was mainly driven by the Government’s decision to freeze the market to stop the spread of Covid-19.
“We have now reached a turning point. The easing of restrictions and raising of the Stamp Duty threshold is beginning to incentivise hesitant buyers to commit to purchases. Although this will reduce receipts in the short term, it will stimulate strong buyer activity and accelerate the market’s recovery.
“To ensure this is stimulus continues to benefit the market in the longer term, we urge the Government consider a phased re-introduction of stamp duty and the gradual lowering of the threshold after March 2021 to ensure demand does not suddenly decline.
“The effects of the changes have already been reflected in the latest pricing data2, indicating how the loosening of lockdown and gradual return to work is starting to boost confidence. Consumers are starting to view their short to medium term financial position more favourably, encouraging them to push ahead with property purchases.
“Now is the time to act. Channeling effective support into the UK’s property market will be vital to speeding up the country’s overall economic recovery. That starts with better use of data and technology to maximise on the surge in demand. Cutting delays in transaction times through the adoption of technology at the very start of the sales process is a crucial first step to ensuring people move faster and that the market is more resilient to future shocks.”
References
- 1 Source: https://www.gov.uk/government/statistics/quarterly-stamp-duty-statistics
- 2 Source: https://www.nationwide.co.uk/about/house-price-index/headlines#tab:Headlines
This article was submitted to be published by Search Acumen as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
