Sunak Stamp Duty Holiday Sparks Soaring Buyer Interest | Business

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The number of home buyers looking for homes has increased in the month since the Chancellor announced a stamp duty holiday, with demand for properties costing between £ 500,000 and £ 750,000 showing the biggest increase, according to figures from the UK’s largest chain of estate agents.Between July 8 and August 8, the number of people signing up to buy nationwide rose 38% from the same period last year, boosted by the stamp duty holiday on properties costing up to £ 500,000, Hamptons International said.

The stamp duty cut, announced by Rishi Sunak as part of an employment support package, means anyone spending more than £ 500,000 on a property should save £ 15,000 if they buy before March 31 next year.

This ruling only applied to sales in England and Northern Ireland, but was followed by changes in Wales and Scotland which raised the tax exemption threshold in those parts of the UK to 250 £ 000.

The housing market had already started to move after the lockdown, but immediately after the Chancellor made his statement, real estate agents reported phones were “ringing off the hook,” while real estate websites reported a wave of pageviews.

Hamptons International’s analysis of data from more than 700 branches owned by its parent company Countrywide suggests that much of the initial wave of interest resulted in serious property searches.

It found that the number of buyers showing interest in properties costing £ 500,000 to £ 750,000 was up 92% year on year, while on budgets between £ 750,000 and £ 1 million, the increase was 74%.

The increase in buyer interest was greatest in Scotland, where registrations increased by 77% per year for all prices. Next come the east of England, which recorded an increase of 53%, and the south-east where the number of potential buyers increased by 52%.

The figures confirm reports from other realtors that many buyers are favoring homes outside of cities, with country property registrations rising 49%. Cities and suburbs recorded an increase of 43%, while the demand for urban housing increased by 20%.

Data showed that this increase in buyer appetite has increased competition at the offer stage, with 30% of sellers receiving offers from three or more buyers, up from 25% at the same time last year.

As a result, the prices agreed as a percentage of the asking price have reached an all-time high. Figures for England and Wales showed properties were generally selling for 98.6% of their asking price. In Yorkshire and the Humber, sales are agreed at just over 100% of asking price, while in North East England the figure is 96.5%.

During the month, 21% of homes in England and Wales sold above their original asking price, Hamptons International said, up from 17% in the same period last year. Scotland’s different property buying system meant it was excluded from price paid analysis.

Aneisha Beveridge, head of research at Hamptons International, said the stamp duty holiday had boosted the market, but the impact of the foreclosure should also be considered as it could boost demand for homes outside of cities .

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“The number of people looking to buy a home has increased in all parts of Britain since the announcement, with the southern regions registering the biggest increase,” she said. “It is in these regions, where house prices tend to be higher, that buyers stand to gain the most from vacations.”

She added, “With space exceeding buyers’ wish lists, the demand for suburban and country homes has increased the most, and it is these homes that are most likely to sell for above their price. request.

“Over the past decade, house prices in cities have risen more than twice as much as in the country, so this trend may mean that the gap between town and country house prices will start to narrow. . “

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