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Homes scoring asking prices hit record high as stamp duty cut boosts demand – Hamptons

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  • 11/08/2020
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Homes scoring asking prices hit record high as stamp duty cut boosts demand – Hamptons
The ratio of homes achieving asking prices has hit a record high, as the number of house hunters has surged since the stamp duty holiday was announced.

 

Prospective home buyers have increased by 38 per cent in the past month compared with the same period last year, according to data from estate agent Hamptons International.

As a result, nearly a third of homes sold since the stamp duty holiday had offers from three or more buyers, up from one in four during the same period last year.

The average home achieved 98.6 per cent of its initial asking price over the past month– a record high and up from 97.8 per cent during the same period last year.

The biggest increase of home buyers are those with a budget between £500k-£750,000, who stand to make the biggest stamp duty savings, the agent said.

Home applicant numbers rose in every region, with Scotland recording the biggest year-on-year uplift of 77 per cent, followed by the East of England and the South East both surging by over 50 per cent.

The agency also found demand to buy in country locations has risen the most, while demand for city locations has risen the least.

Aneisha Beveridge, head of research at Hamptons International, said: “The introduction of the stamp duty holiday has given a further boost to the housing market which was already showing strong signs of recovery even before its introduction.

“The number of people looking to buy a home has risen across every region in Great Britain since the announcement, with southern areas recording the biggest increase.

“It’s in these regions, where house prices tend to be higher, that buyers stand to gain the most from the holiday.

“While it’s still early days, the data suggests that house prices seem to be stable, with homes under offer achieving a record share of their initial asking price.”

Beveridge also pointed out that some of the boosted activity is likely due to pent-up demand as well as the stamp duty cut.

She added: “While the stamp duty holiday has boosted the market, the impact of two months lockdown shouldn’t be ignored either.

“Having spent more time in our homes, many households have decided to bring forward moves.

“With space topping buyers wish lists, demand for homes in the suburbs and country locations has increased the most, and it’s these homes that are most likely to sell above their asking price.

“Over the last decade house prices in cities have risen more than twice as much as those in the country, so this trend may mean the gap between city and country house prices will begin to close.”

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