The housing market has the busiest month in more than 10 years | Money

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The housing market had its busiest month in more than 10 years, with the traditional summer lull replaced by a wave of activity from buyers and sellers, according to real estate website Rightmove.The site, which typically lists around 95% of houses for sale in the UK, said ‘the rulebook has been rewritten’ as the boom fueled by pent-up demand during the foreclosure accelerates as the summer continues. was advancing.

He said the number of monthly sales agreed to in Britain was the highest since he started tracking the figure a decade ago, up 38% from the same period last year and with a combined total value of over £ 37 billion.

Potential sellers were also active, with more properties coming onto the market than in any month since 2008.

Asking prices fell an average of 0.2% across mainland Britain, but this was due to a 2% drop in London, where the number of homes put on the market is up 69% from year after year. In seven regions, asking prices hit record highs as sellers sought to make the most of demand.

The housing market was locked out and reopened in mid-May, sparking a wave of activity. In July, stamp duties were canceled on houses costing up to £ 500,000 in England and £ 250,000 in Wales and Scotland, further fueling activity.

Last week, figures from the UK’s largest estate agency Countrywide showed demand for homes costing between £ 500,000 and £ 750,000 had skyrocketed since the tax break was announced, and the figures by Rightmove suggest a similar effect for other agents.

The number of agreed sales for large homes increased by 59% per year, while for first-time properties the increase was 29% and for three and four bedroom homes, excluding single properties. four beds, 38%.

Miles Shipside, a director of Rightmove, said: “There have been many changes in the wake of the unprecedented pandemic, and these include a rewrite of the previously predictable seasonal rulebook for business and pricing of the estate market.

He added: “Rather than just releasing existing pent-up demand due to the suspension of the housing market during the foreclosure, there is an extra layer of additional demand due to people’s shifting housing priorities. after the experience of the lockdown. ”

Demand for housing has put pressure on lenders and the transfer of property who, under social distancing rules, are often operating below their usual capacity.

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Shipside said, “It will take patience, especially with some lenders limiting their product lines due to capacity constraints in their ability to process mortgages.”

At the end of last month, the Nationwide Building Society warned of a “false dawn” in the housing market after reporting a price hike in July.

He said as the time off program rolls out there may be more job losses, which will again hurt business.

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