Home Residential Property HMRC property transactions: ‘Last gasp effort to get purchases over the line’

HMRC property transactions: ‘Last gasp effort to get purchases over the line’

by LLP Editor
21st Oct 21 11:38 am

Residential property transactions totalled 160,950 in September, 68.4% higher than September 2020 and 67.5% higher than August, according to the latest HMRC figures.

On a non-seasonally adjusted basis transactions were 165,720, 67.3% higher than September 2020 and 59.7% higher than August.

Paul Stockwell, Chief Commercial Officer at Gatehouse Bank, said: “A last gasp effort from buyers to get their house purchases over the line before the stamp duty holiday ended resulted in another big spike in transactions in September.

“With the incentive now withdrawn, this is likely to be the last unseasonal spike in transactions we see.

“The stamp duty reduction alone has not been responsible for whipping up the enormous demand we have seen since last summer, but it has encouraged transactions to bunch uncharacteristically into several big peaks.

“It will likely now equally cause a slump in sales in October, like the one witnessed in July when the most generous stamp duty savings were trimmed.

“Low supply and continued high demand, particularly driven by buyers searching for more space, will almost certainly keep prices high, but transactions look likely to settle back down to historic norms while stamp duty costs remain a major financial obstacle for many buyers.”

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