You are here: Home - Mortgages - First Time Buyer - News -

Pent-up demand pushes residential transactions up 14%

Written by: Shekina Tuahene
There were 70,710 residential property transactions completed in July, a 14.5% rise on June, figures from HM Revenue and Customs show.

HMRC said this was likely due to pent-up demand following the lockdown and noted the impact of the stamp duty holiday would be seen in transactions in late August or early September. 

However, residential property transactions were still 27.4% lower when compared to the same month last year.

And provisional figures for the second quarter of the year suggest the 151,950 transactions completed was the lowest from April to June since 2005 

Previous lows were seen during the peak of the financial crisis in the second half of 2008 and the first half of 2009. Outside these periods, quarterly transactions have remained above 200,000.

Looking to the future 

Richard Pike, sales and marketing director at Phoebus Software, said pent-up demand was to be expected but wondered if the activity would be sustainable. 

He said: “It is an encouraging sign, but as ever it also has to be regarded with an element of caution. Many will be looking to take advantage of incentives before the government pulls the purse strings closed.  

But, in creating a finite date of 31 March 2021, will we see an artificial increase in house prices, as people try to save on stamp duty, and then a slump in prices when the tax returns on the 1st April? The next three months will be very interesting as we see figures released following a summer post-lockdown.” 

Andrew Southern, chairman of property developer Southern Grove, said if sales volumes could make up for lost activity a change in policy might be required.  

“If sales can climb out of this rut, then it could be the one thing that might convince the chancellor to make the stamp duty holiday a more permanent arrangement — something the property market badly needs,” he added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
July retail sales 3% above pre-pandemic levels

Retail sales in the month to July increased 3.6% from the previous record falls experienced due to the coronavirus pandemic,...