62% drop in UK home sales after stamp duty deadline


Home sales fell by nearly two-thirds last month as activity chilled after all stamp duty holidays were over. New numbers are shown.

According to HMRC, an estimated 82,110 residential real estate sales were made in July, down 62% from record levels in June.

This was more than double the number seen a year ago in the UK real estate market, with HMRC reporting the highest monthly UK total sales of 213,120 since the introduction of statistics in April 2005. Compared to the enthusiastic June.

HMRC said that following the stamp duty deadline last month, “an expected but significant decline was observed in the UK’s provisional housing transaction statistics for July 2021.”

In England and Northern Ireland, buyers are required to complete their purchases before the temporarily raised “zero rate” band of Home Stamp Duty and Land Tax (SDLT) reaches £ 500,000 ($ 686,000) on June 30. I competed.

The bailout has since been tapered to £ 250,000 ($ 343,000) and the zero rate band is set to return to £ 125,000 ($ 172,000) on September 30th.

However, despite a drop in sales activity last month, HMRC data shows a 1.8% increase in purchases compared to July last year, when activity was still affected by the nearly complete closure of the market from March to mid-May. I showed that I did.

Real estate market experts said activity peaked after the end of the full tax cut, but demand remains strong as pandemics and telecommuting trends continue to drive changes in demand.

Jeremy Reef, a real estate agent in northern London and former housing chairman of the Royal Institution of Chartered Surveyors (RICS), said: Despite saving less than the savings by the end of June, buyers were still keen to proceed with the purchase. “

Earlier this month, RICS reported that house hunter inquiries began to shrink in July, ending a four-month positive series. Meanwhile, the national home price index showed a 0.5% drop in the first fall since March.

“Currently, the market is definitely calm, but many people use staycation to stay in touch with market activity, and as potential sellers return from vacation, the list slowly reappears. It’s starting to rise. “

Mike Scott, chief analyst at real estate agency Yopa, said: -I lived.

“September is expected to be followed by a much stronger month before the new deadline for the rest of the stamp duty holidays, followed by a short-term decline.”

Holly Williams