The latest monthly UK real estate transactions data from HMRC National Statistics show that the provisional, seasonally adjusted estimate of UK residential transactions in August 2021 is 98,300, up 20.8% than August 2020 and 32.0% more than in July 2021.
The rebound comes after a drastic drop in transactions in July when the SDLT holiday cliff was reached and is perhaps further evidence that the holidays were not entirely responsible for the extraordinary levels of sales during the pandemic. It also indicates that the pressure from low sales inventory is not going to ease anytime soon, and supply issues are likely to push first-time buyers to home ownership even more.
Chris Hutchinson, CEO of Canopy:
âHousing market activity resumed in August following an immediate lull in demand following the end of the stamp duty holiday in July.
âFirst-time buyers can finally take a step forward after months of frantic market exclusion, but we still see a big gap between supply and demand, which fuels competition. Recent data from Propertymark suggests that there is an average of 19 buyers looking for every available property on the market. And with rents skyrocketing at record rates, many people may find themselves unable to raise money for a deposit and secure an affordable mortgage.
âThe time has come for the government to consider longer-term solutions to support first-time buyers. Helping tenants prepare for credit can mean the difference between being turned down or accepting that all-important mortgage when it comes time to buy. Building the financial security of tenants should be a top priority.
Sam Mitchell, CEO of Online Realtor Strike:
âThe real estate market has once again proven its resilience, with transactions up 32% in August.
‘We are seeing another wave of activity as buyers and sellers race to finish before the last stamp duty savings are scrapped this month, with properties valued under Â£ 250,000 benefiting always relief. But the strength of the UK property market extends far beyond fluctuations in tax policy developments, and we see little sign of slowing down in the coming months despite the end of the stamp duty holiday.
âThere are still other incentives, such as increasing mortgage offers to 95% and record interest rates. In addition, people continue to re-evaluate their needs in a home due to the increase in remote working, with more space and a rural life proving to be more in demand than ever. “
Anthony Codling from Twindig:
âWe expect to see another trading spike in September, a final stamp duty holiday hurray before a fall lull as the market catches up to trades that have been pulled forward by the stamp duty holiday. At present, the housing market appears to be healthy and we hope that its good health will continue. “
Lucian Cook, Residential Research Manager at Savills:
âToday’s data means there were over a million transactions in the first eight months of the year for the first time since the credit crunch.
“It is remarkable that monthly transactions are back to normal pre-pandemic levels just two months after a sharp increase in transactions in June, especially given the current housing shortage on the market.”
Nick Leeming, President of Jackson-Stops:
âToday’s trading statistics, which show a big increase from July’s numbers, prove that deeper shifts in lifestyle preferences are expected to support consistently high levels of market activity over the long haul. term, and that buyers are not discouraged even by an increase in their tax bill. .
âWhile we are not seeing quite the same level of intensity as in the spring, which was the product of an unprecedented set of market forces, we are already starting to see signs of a return to levels. Relatively high activity coming into the fall, with UK residential transactions adjusted close to pre-pandemic levels.
âAcross the country, many people will look to the future and carefully consider how changes to their work habits and lifestyle will affect what they need from their homes.
âWhile the phasing out of SDLT vacations has reduced the need to act at breakneck speed, the fact that transactions are growing so rapidly in a generally slower month for the market, shows that people across the country waste no time adjusting to major changes in the relationship between life and work. This will continue to fuel demand.