‘Pent up demand’ behind property sales rise, says HMRC

This is up by 14.5% from June, though is down by 27.4% in comparison to July 2019. Sales figures have increased consistently since April, though remain lower than the numbers seen before Covid-19 reached the UK. HMRC suggested the latest monthly increase was “likely the result of pent-up demand”, and argued that the Stamp Duty holiday announced in July is unlikely to impact transaction figures until late August or early September.

Mark Harris, chief executive of broker SPF Private Clients, said that September’s data will be of more interest, as it will reflect the “bustle of activity” firms in the mortgage market are seeing. He added: “Lenders remain keen to lend although they are exceptionally busy due to higher demand, dealing with the summer holidays and other demands placed on them by the fallout from the pandemic, with closer scrutiny of borrowers’ incomes meaning everything is taking longer. Rates are still competitively priced although at higher loan-to-values in particular they are creeping up.”

Lucy Pendleton, property expert at estate agent James Pendleton, said buyers are registering “at a blistering pace” for this time of year, suggesting that the “property renaissance isn’t over yet”. She added that summer months often see a big initial surge followed by a steady decline in new buyer registrations, but that isn’t happening this year.

“To say the market is buoyant is a huge understatement. Prices are rising, the volume of offers is strong and transaction levels are continuing to climb. Just four months ago, 2020’s property market felt like a write off but it’s going to be interesting to see to what degree the wave of demand unleashed by the Chancellor is going to help make up for lost ground,” she concluded.

Original Article by John Fitzsimons – Mortgage Finance Gazette