Data from Rightmove has revealed that July was the busiest month for property sales in ten years, with agreed sales of £37bn. This is £12bn more than during July 2019 when sales reached £25bn.
House purchases plummeted during lockdown as a result of restrictions but began to increase from mid-May when property viewings and house moves were allowed to recommence.
The government’s July decision to cut stamp duty has also encouraged potential buyers and sellers, with properties £500k and under subject to zero stamp duty.
Rightmove’s data said the average asking price in August was £319,497, down 0.2% from the record high in July’s £320,265.
Averages were pulled down by a 2% reduction in London’s asking prices, but Rightmove’s data shows that record asking prices were experienced in Scotland, Wales, Yorkshire and the Humber, North West England, the East Midlands, West Midlands and the East of England.
Sales numbers rose by 60% between 5-12 August compared with 2019; a week during which house prices and sales are usually lower due to people taking holidays.
Miles Shipside, a Rightmove director said: “We associate this time of year with diving into the pool rather than the property market, and of sand and sun rather than bricks and mortar, but buyers have had a record £37bn-monthly spending spree.”
“More property is coming to market than a year ago in all regions, and at a national level the new supply and heightened demand seem relatively balanced.”
“However, those expressing most desire to move on are unsurprisingly in London and its commuter belt.”
Source : Insight DIY Team
Comment from Ross Counsell, chartered surveyor and director at regulated property buyers, Good Move on today’s Rightmove HPI:
“Today’s Rightmove HPI reveals the UK housing market gained further momentum last month which showcases the ongoing recovery, especially with the average asking price on the up. The measurements employed by the government such as the Stamp Duty holiday has positively impacted this peak.
“Today’s statistics will hopefully reassure buyers and sellers in the UK that the property market is starting to return to “normal”. However, we must not forget that we are now in a recession, therefore we advise buyers who are looking to purchase a home during the recession to thoroughly check out the property before they commit, and ask important questions such as how much work the property may need to ensure they’re protecting their finances and getting the best possible deal. Buyers must not get swept away in a low house price or jump at the first-rate a mortgage lender offers. Purchasing a home during this time is a big decision and one that needs to be thought about carefully.
“Moreover, to keep activity on the up, the government should look to extend certain policies such as the Stamp Duty holiday to keep things moving.”
Source: Insight DIY & https://goodmove.co.uk/