Property sale transactions have fallen off a cliff, latest housing data from HMRC reveals.
Sales dropped by 62% after the initial 1st July stamp duty deadline passed, whether ‘seasonally-adjusted’ or not, and HMRC blames the drop squarely on the stamp duty holiday deadline.
These latest figures also show that the bubble was entirely artificial – transactions during July returned to their normal levels for July.
Guy Gittins (pictured), CEO of Chestertons, says: “The inflated market activity we have seen due to the stamp duty holiday appears to have finally reached its peak after an unprecedented number of property sales during the first half of the year.
“Whilst the urgency has now come out of the market, we still have a record number of ciainumulative buyers remaining who are looking to buy.”
Sam Mitchell, CEO of Strike, says: “People may be questioning how the property market will cope now that the stamp duty holiday is winding down, but demand is still far greater than prior to the pandemic.
“Smaller properties below the £250,000 stamp duty holiday limit are partly driving this, and there’s also the ongoing trend of homeowners looking for more space and opting for regional locations over city commuter belts. Especially now that many companies are making it clear that hybrid working is here to stay.”
London agent and former RICS president Jeremy Leaf (pictured) says: “‘The figures clearly illustrate how many people brought forward buying decisions to take advantage of the stamp duty holiday. The market is definitely calmer now but many are taking advantage of staycations to keep in touch with market activity, with listings slowly beginning to rise again as prospective sellers return from holiday.”
Iain McKenzie, CEO of The Guild of Property Professionals, adds: “What goes up, must come down is certainly the story being told in this data
“Take the figures with a pinch of salt as we saw monumental growth in the volume of properties sold prior to July, in light of the rush to beat the deadline for the full stamp duty discount.
“It was always inevitable that July would show a dramatic downturn, although a 62.8% decrease in transactions is a big fall.”