Stamp Duty Holiday Impact On Sales
It has now been over a year since the housing market re-opened in May 2020, and we are closing in on a year since the stamp duty holiday was introduced.
At Atkinsons Residential, we know there is significant demand for property right, and there is considerable interest in the housing market. We want to help you make informed decisions in the market, and if you would like to discuss any matter of the property market, please get in touch.
Stamp duty holiday led to more property sales
In information provided by Search Acumen, the stamp duty holiday led to an additional 171,000 monthly property transactions, and a 7% growth in property prices.
Their study saw property prices rise 7% between June 2020 and February, an outcome which saw £17,265 added to the price of the average home in England. When you consider the average saving was £2,572; the overall impact of the stamp duty holiday for buyers might not be as appealing as you would hope.
According to research, the current tax holiday saw house prices rise 7% between June 2020 and February 2021, adding £17,265 to the price of the average home in England, more than offsetting the £2,572 savings made on the average property.
Are you looking to move?
Other key findings from the research include:
An average of 103,724 residential property transactions took place each month across England and the north of Ireland since the introduction of the stamp duty holiday in 2020
This represents a rise of 22% from the average of 84,691 which is in effect for the 12 months to March 2020
A total of 171,303 extra property deals, in comparison to pre-covid figures have taken place.
In the aftermath of the 2008/09 financial crisis, an average of 60,048 property deals took place
These figures represented a fall of 27% from the previous 12 months average, of 82,378 transactions
Since the current holiday has been in place, English house prices have risen by 7%, moving from £268,291 to £251,026
When the holiday occurred in 2008/09, property prices fell 2%, moving from £177,232 to £174,136 in less than a year and a half.
Andy Sommerville, director at Search Acumen, said: “This analysis suggests the property market has been far more responsive to intervention compared to the post-financial crisis holiday. The housing market’s strong performance compared to the wider economy highlights the contrast between the current healthcare crisis and its economic impacts, and the 2008/09 crisis which was rooted in financial markets. While many households have absorbed income hits and face greater job insecurity, the UK’s financial system has held up reasonably well since the onset of COVID.”
Andy concluded by saying; “Property lawyers have been working around the clock to get people into their homes before the initial 31 March cut off. The conveyancing workload is unlikely to get any lighter given the holiday is now running until June and tapering through to September. In the long term, the industry needs to put conveyancing capacity – not to mention mental wellbeing – at the top of the agenda given the pressure law firms have been under to ensure clients complete on time.”
If you are looking for guidance or assistance in the Enfield property market, we can help. At Atkinsons Residential, we are estate, land and letting agent specialists, and we look forward to assisting you as best we can. If you would like to arrange a property valuation, please call us on 020 8366 0261, while you can contact us on 020 8342 1234 for all letting enquiries.