At Love Your Home, we pay close attention to market figures from trusted sources. We work closely with buyers and vendors, which allows us instant insight into what people think, but we also react to what is happening in the market.
We know HMRC figures can be relied upon, and they tell the story of a booming and bustling market.
The most recent figures from HMRC indicate UK residential transactions in October 2020 were 8.1% higher than the October 2019 figures. The October 2020 figure was also 9.8% higher than the figure recorded in September 2020.
HMRC have also said the provisional non-seasonally adjusted estimate of UK residential transactions in October 2020 is 121,740. This is 13.7% higher than October 2019 and 23.7% higher than the September 2020 figures.
Anna Clare Harper is the CEO of asset manager SPI Capital, and she said; “The increase in residential property transactions - 8.1% up compared to October 2019 and 9.8% up compared to September 2020 - reflects positive forces that are applying uniquely to the housing market at this time. In April and May, under strict lockdown, transactions were down by about 50% compared with the same time the previous year. Transactions are now being encouraged by the temporary stamp duty reduction, the release of pent-up demand and supply, and the desire to improve surroundings following lockdown. By contrast, non-residential transactions have remained subdued - as owners and buyers struggle to come to grips with the ‘new normal’.”
Anna Clare Harper continued by saying; “What is clear from the residential transactions data is that the fundamental drivers of value in residential property remain strong: our homes have never been so important as in lockdown. So what next? What we know for sure is that this will be driven by a combination of macroeconomic factors and policy changes, neither of which are predictable in these uncertain, fast-changing times.”
Joshua Elash is the director of property lender MT Finance, and he said; "The continued growth in the volume of residential transactions is breath-taking. October’s data no longer merely reflects pent-up demand but points directly to the impact of the stamp duty concession. It looks and feels as though there is a rush to take advantage of this opportunity, which is driving continued growth in transactional volumes.”
Joshua continued by saying; “The obvious concern is what happens to demand and transactional volumes if, and when, the stamp duty holiday ends. Without an extension, we risk seeing a violent drop-in activity, leading to a fall in asset values. It is no surprise to see that non-residential transactions are down year-on-year, with Covid hitting commercial assets particularly hard as more businesses struggle to survive. We expect this trend to accelerate.”
We know these are challenging times for the property and rental market. At Love Your Home, we are keen to maintain a high standard of service for all our clients. As well as helping people now, we will review the changes likely to occur in the market. If you are looking to stay informed, rely on Love Your Home.