Mike Bristow, CEO at CrowdProperty, a property investment platform, says that there’s likely to be a significant increase in overall activity in the UK’s property market. Bristow believes that the surge in transactions should come toward the end of the stamp duty holiday.
Bristow’s comments have come after the release of data from HMRC which indicates that there were over 105,000 residential deals last month, which represents an 8.1% year-on-year (YoY) increase and a 9.8% growth when compared to figures from September 2020.
Bristow also mentioned that he wasn’t really surprised by these figures, adding that there’s around a 3-month gap between different offers and completion dates so the relatively high numbers and growth recorded last month is more indicative of offers made in July 2020.
Bristow further noted that the offers may have actually increased from June to July 2020, because of the growing demand created following the first nationwide lockdown (in the UK). He also pointed out that the annual numbers may also reveal an increase because of the relatively low figures seen during this time in 2019. That’s when the market had been negatively affected by the election and Brexit-related uncertainty.
As reported by Peer 2 Peer Finance News, Bristow noted that the stamp duty has been leading to increased activity in the UK housing market recently. He added that this may result in an increase in property purchases during November and December 2020. At present, the stamp duty holiday applies to property purchased for £500,000 or less. It’s scheduled to end in March 2021.
Bristow stated that people tend to trade up or down depending on their life stages and he believes the stamp duty cut could have led many more people to make purchases. He added that before January and February 2021, unless the UK government decides to extend the stamp duty holiday, the nation’s residents won’t get the chance to benefit from it.
He also mentioned that given the current backlog, UK residents might begin to think about whether they’ll get their transactions completed on time. They might be able to do so, but it would depend on their lender and solicitor and the backlog. Bristow claims there will likely be a “bigger rush” before Christmas. He also said that the volumes of offers being worked out right now will likely be because of that.
Sam Mitchell, CEO at online estate agent Strike, has also noted the UK government’s stamp duty holiday has led to a surge in activity and this might continue until March 2021.
Mitchell added that it is shaping up to be a great way to end the year for the UK’s property sector. He also mentioned that recent news of a COVID-19 vaccine appears to have increased confidence, and people seem to be rushing to take advantage of the stamp duty holiday. Mitchell claims that this surge in activity has led to his company having a “record-breaking” day for offers this past week.