Property

Huge increase in homebuyer demand only just being realised

Property Reporter
|
20th November 2020
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Newly released data from estate agent comparison site, GetAgent.co.uk, has revealed the first signs of a stamp duty holiday fuelled revival beginning to emerge in property transactions.

According to the research, which analysed the current market health in the wake of the stamp duty holiday decision, the overall market benefit is only just starting to show where top-line transactions are concerned.

The figures show that transactions across the UK were just -0.7% lower in September than this time last year. However, in England, there has been an uplift of 1% on an annual basis, the first time transaction levels have increased on an annual basis.

Since the stamp duty holiday was announced in July, buyer activity has exploded boosting house prices along with it.

GetAgent analysed the average house price across England each month from June and how it compared to the same month last year.

In July house prices were 2% higher than July 2019. In August, house prices climbed a further 1.6% on a month to month basis and sat 3.4% higher than the previous year.

The most recent Land Registry data, released this week, shows that in September there was yet further house price growth, with the average house price climbing to a huge 4.9% higher than the previous year.

However, while house prices have increased, transactions had yet to return to the same levels seen a year ago, largely due to the length of time it takes to sell a home.

With the market having ground to a halt during lockdown, it’s no surprise that property transactions in June of this year sat some -29% lower than in 2019 at 83,860.

Even with the announcement of the stamp duty holiday in July, the lag of actually completing a sale meant that transactions again sat -21% lower than they did in July 2019 and were also down -22% in August when compared to the previous year.

However, the latest data shows that there were some 84,480 property transactions completed in September of this year. This is a 1.1% increase when compared to September 2019 providing the first signs that the property market in England is starting to accelerate back to good health.

There also been a notable 16% uplift in property transactions between August and September of this year, while in 2019 there was a drop of -10%.

On average, property transactions across England have increased at an average monthly rate of 13% since June compared to just 0.2% a month during the same time period last year.

Colby Short, Founder and CEO of GetAgent.co.uk, commented: "The latest market data provides the best proof yet that the market has rebounded from the depths of pandemic paralysis, fuelled by a huge increase in homebuyer demand as a result of the stamp duty holiday.

"It’s the first time we’ve seen transaction levels exceed that of a year ago on a monthly basis since the market reopened for business and it looks to be the tip of the iceberg.

"This is extremely positive news as while price growth provides a good indicator of market health, it’s actual transactions that tell the true story of what we’re seeing on the ground.

"With such overwhelming demand, the industry has struggled to cope causing huge backlogs of sales waiting to complete. However, as we continue to work tirelessly to clear this backlog, transaction numbers should continue to climb even higher over the next few months."

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