In August the number of residential homes sold in the UK rose to 98,000, according to government data. This is 20.8% higher than in the same month of 2020.
But the significant leap in sales from July, which saw sales drop by over two thirds, demonstrated there was still plenty of life in the property market yet.
Sarah Coles, personal finance analyst, Hargreaves Lansdown, said: “The property market was just pausing for breath in July, and set off again in August – albeit at a slightly less frenetic pace.
“The withdrawal of most of the stamp duty break at the end of June meant buyers made a dash for the finish line, leaving a gap in July. However, August’s figures show that this was a temporary pause rather than a full stop.”
Indeed, sales in August returned to a similar level which had been experienced at the same time of year before the pandemic.
She added: “It goes to show that the ongoing game of musical houses isn’t over, as some of those living within commuting distance of city centres make a break for the country, those in the centres take a step to the outskirts, and new buyers move into their vacated flats.
“This has all been supported by mortgage rates, which are still at historic lows, so buyers are able to lock in a rate that makes a move affordable.”
September Stamp Duty Deadline
Although the full Stamp Duty Holiday ended on 30 June, buyers can still take advantage of a the tapered version of the take break until 30 September. Up until the end of this month the ‘nil rate’ applies to the first £250,000 of the purchase price.
For this reason, other experts believe this final deadline had played a role in driving the high number of August sales.
Anna Clare Harper, CEO of property consultancy SPI Capital, said: “The uptick in transactions in August reflects the impact of government policy.
“At the end of June, the temporary reduction in stamp duty began to step down. Investors, homeowners, solicitors and banks pushed hard to get transactions done in time for buyers to complete before the end of June to make the most of this temporary relief.
“Transactions slowed in July and, since then, the pace has picked up. Buyers are now rushing to complete transactions before the final ‘step down’ in September.”
She added: “Throughout this period, interest rates have been low and banks have been happy to lend at a very low cost to potential buyers, boosting transactions further.”
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