Volume of properties falls nearly 22% across UK – study

24 March 2021 | Investment

Volume of properties falls nearly 22% across UK - study

The average volume of properties advertised on the market has fallen by nearly 22% since it hit a peak in November, according to apropos.

Analysis by the lettings firm reveals that the average number of properties advertised has fallen by 21.9% across the largest 20 cities in the UK, from the greatest decrease of 35% in Bristol and Glasgow to the lowest in Manchester at just 9%.

The number of properties advertised peaked in November 2020 as the impact of the stamp duty holiday was felt throughout the market. Many people were keen to move and used the reduced tax burden to buy and sell property.

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However, advertised property began to fall as people realised that they would be unlikely to get their sale through before the initial March 31 deadline.

David Alexander, joint chief executive officer of apropos, comments: “We can see from these figures that the market really boomed following the reduction in stamp duty fuelled by peoples’ desire to get the best home they could to match their changing needs in the post pandemic world.”

“The sharp fall since November highlights the projected cliff edge caused by the March 31 deadline as sellers clearly felt demand was being driven by the stamp duty relief.”

While it’s uncertain whether there will be an uptick, Alexander believes the additional six months of stamp duty holiday will probably provide a boost to the market.

“It is likely that volumes may, if not rise suddenly, stabilise at their current levels as sellers and buyers realise they will now achieve the existing and extended deadline,” he says.

“There is little doubt that the stamp duty holiday produced the required stimulus for the property market at what would otherwise have been a difficult time. However, it has also highlighted that there is a need to review all property tax to produce a more coherent, stable, and fair means of taxing the market.”

He concludes: “That a tax reduction like this could have such a huge impact over such a short time needs to be examined to see if some of the elements which encourage demand, whilst maintaining Government income, can be replicated in a revised version of stamp duty in the future.”

You can view the results in full below:

Location Number of advertised properties for sale year on year
  Nov 2020 Mar 2021 %
Bristol 3339 2170 -35
Glasgow 2737 1777 -35
Brighton 2896 1987 -31
Southampton 2182 1549 -29
Edinburgh 2357 1767 -28
Sheffield 1310 985 -25
Bradford  1698 1295 -24
Hull 1704 1296 -24
Derby 1305 1026 -21
Nottingham 2485 1960 -21
Coventry 1905 1521 -20
Leicester 2303 1836 -20
Newcastle 3381 2697 -20
Leeds 2237 1805 -19
Belfast 1362 1121 -18
Cardiff 2508 2104 -16
London 68028 58602 -14
Birmingham 4692 4010 -15
Liverpool 5186 4445 -14
Manchester 4945 4510 -9

This post has originally been featured in Property Investor Today.