HMRC has stated that its provisional seasonally adjusted estimate of UK residential property transactions in June 2020 is 63,250, 35.9% lower than June 2019 and 31.7% higher than May 2020.
Meanwhile, its estimate of UK non-residential property transactions in June 2020 is 7,340, 27.4% lower than June 2019 and 31.2% higher than May last year.
Andy Sommerville, director of Search Acumen, said: “This latest data shows an uplift in buyers and sellers’ confidence levels, sparked by the easing of restrictions as we see more individuals return to work and bars and restaurants open.
“We are yet to see the full impact of the government’s decision to raise the stamp duty threshold to £500,000, but early indicators suggest an uptick in sales as pent up demand from months of lockdown is released.
“In the same vein, lenders are also recovering their risk appetite and removing temporary credit controls, which could further stimulate buyer activity and give first time buyers a route to entry once again.
“The UK’s property market is a cornerstone of the country’s economy and now has never been a more important time to ensure we do all we can to support it. That starts with better use of data and technology to tackle the surge in demand. Firms adopting digital innovations are best placed to lead the market into a ‘new normal’ by providing better advice and service to clients in the long-term.”
Tomer Aboody, director of property lender MT Finance, added: “These numbers demonstrate the most abrupt halt to the property market we have ever seen due to lockdown, followed by a significant surge in interest from people wanting to buy. The stamp duty holiday has played a big part and there is a lot of confidence around. The market has been crying out for a stamp duty reduction for some years and although it’s not across the board, it has fuelled demand and encouraged buyers to come back out and transact.
“We are still below last year’s numbers, which in turn were down on the previous year, but confidence is creeping back up. If the government increases capital gains tax on principal home sales, it will push us back again so any progress made by the stamp duty reduction will be swiftly lost. We need more stimulus via reduced stamp duty to the upper end of the market and hope for this in the autumn Budget.
“For now, confidence and transaction numbers are increasing, demonstrating a welcome positivity which we have not seen for some time.”
