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Q1 house price falls reversed with stamp duty holiday extension – Reallymoving

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  • 19/04/2021
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Q1 house price falls reversed with stamp duty holiday extension – Reallymoving
House prices were dropping ahead of the original stamp duty holiday deadline, but this was reversed following the extension announcement, analysis from Reallymoving has shown.

 

Following strong growth in the second half of 2020 the firm said prices were on a downward trend in the first three months of the year and showing signs of returning to more normal levels, but that has since been flipped. 

Reallymoving records the prices buyers agree to pay for properties when they search for conveyancing quotes, which is typically 12 weeks before the sale completes 

According to this data, the average price agreed in March was £313,235, a 2.6 per cent drop on February.

This indicated a slowdown in activity as people who were agreeing on sales 12 weeks prior in December suspected they would not meet the original stamp duty holiday deadline, it said.

However, searches for conveyancing quotes doubled by the end of the month after the extension was announced, suggesting a resurgence in demand.  

 

May drop, June bounce

According to information entered by site visitors, the firm predicts prices will drop 5.3 per cent month-on-month to £296,560 in May, based on the sentiment of buyers in February.  

This will then rise by 2.8 per cent to £304,782 in June as buyers realised they were given a second chance to benefit from the tax break in March.  

This suggests that the stamp duty holiday extension fuelled demand and saw buyers willing to pay more for their desired properties. 

Rob Houghton, CEO of Reallymovingsaid: “Agents and portals across the UK have been reporting a surge in buyer demand following the stamp duty extension announcement. 

“Now through our analysis of conveyancing quote data, we’re seeing the first clear evidence that this activity has led buyers and sellers to agree deals at higher prices in March, which will become evident in Land Registry data in the early summer. 

 

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