Stamp duty cut sees number of houses sold reach 13-year high

31 August 2020 | Investment

An average of 13 house sales were agreed per branch in July – the highest figure recorded since June 2007, according to NAEA Propertymark’s July Housing Report.

Number of sales agreed soars

The average number of sales agreed per estate agent branch stood at 13 in July following the Chancellor’s announcement of a stamp duty holiday.

The trade body says this is the highest figure recorded since June 2007 when 13 sales were also recorded per member branch.

Year-on-year, the number of sales per branch has increased by 44%, rising from nine recorded in July last year.

What properties sold for

In July, 8% of properties sold for more than the original asking price – a fall from 10% the previous month.

Three in five (60%) properties sold for less than the original asking price in July.

Demand for housing on the up

The number of house hunters registered per estate agent branch rose from 379 in June to 428 in July – an increase of 13%.

Year-on-year, housing demand is up by a third (35%), rising from 316 in July 2019.

Supply of available properties

Meanwhile, the number of properties available per member branch stood at 43 in July, increasing from 37 in June.

On a yearly basis, the supply of housing climbed marginally from 41 properties per member branch in July 2019.

Sales to first-time buyers

The number of sales made to first-time buyers stood at 25% in July – a small dip from 29% in June. However, with the property market showing resilience, this figure is expected to rise once again in the following months.

Mark Hayward, outgoing chief executive at NAEA Propertymark, comments: “It’s positive to see the market continuing to boom with clear interest from both buyers and sellers. Usually we would expect to see a lull in activity during the summer months; however, demand remains unabated with no signs that this will not continue.”

“With the recent stamp duty holiday announcement, we expect the housing market to remain busy throughout the rest of the summer.”

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–> This post has originally been featured in Property Investor Today.