Residential property transactions see 32% rise in June

The latest data and analysis from HMRC has revealed that, between May and June this year, residential property transactions climbed to 63,250 - a rise of 31.7%.

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Property Reporter
21st July 2020

However, largely due to the pandemic, this figure is still 35.9% lower than the same period a year earlier.

On a non-seasonally adjusted basis, the number of residential transactions in June totalled 68,670, 31.5% lower than June 2019.

Anna Clare Harper, author of Strategic Property Investing, says: "The context of the recent change to stamp duty is making waves through the housing market. The quick implementation and temporary nature of the change, combined with pent-up demand in the housing market, has for obvious reasons resulted in an increase in transactions.

"As with health-related statistics on Covid-19, it;s important not to take the data out of context when looking to the future. It is hardly surprising that the stamp duty change has resulted in a bounce in transactions. However, it is worth noting that this does not give an accurate guide to future trends or any guarantee as to what will happen going forward."

Jeremy Leaf, north London estate agent and a former RICS residential chairman, comments: "Transactions, not more volatile house prices, are always a better indicator of market strength. These figures show activity is moving in the right direction but will clearly take time to be reflected in the figures as we emerge from lockdown and associated restrictions.

"Nevertheless, we have noticed at street level that many buyers and sellers are bringing forward-moving decisions to take advantage of the stamp duty holiday and continuing lower interest rates. There is still concern that improved conditions will be relatively short-lived as economic news deteriorates and furlough support falls away."

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