HMRC’s provisional seasonally adjusted estimate of UK residential transactions in August 2021 is 98,300, 20.8% higher than August 2020 and 32.0% higher than July 2021.
Its estimate of UK non-residential transactions in August is 110,250, 28.2% higher than the same month one year ago and 5.8% higher than in July 2021.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The housing market has proved surprisingly resilient despite the reduction in the stamp duty saving since the beginning of July. Transactions are always a better measure of underlying market strength than more volatile house prices.
“Many buyers brought forward purchases in order to take maximum advantage of the stamp duty concession which began to taper off from 30 June. Enquiries are still considerably above pre-pandemic levels though less activity will mean price growth is likely to continue to slow towards the end of the year. Values are still being supported by shortages of stock and low mortgage rates although valuation appraisals have been increasing lately which usually means instructions are about to pick up.
“Looking forward, the market is likely to cool bearing in mind the impending pressure on real incomes from higher inflation and the withdrawal of the furlough scheme at the end of this month.”
