Property sales accelerate again: July was a temporary pause and not a full stop

Property sales accelerate again: July was a temporary pause and not a full stop

• Property sales rose to 106,150 in August – up 28% from July (not seasonally adjusted). This is 24.8% higher than a year earlier.
• Sales had dropped over two thirds the previous month.
• Sales over the 2021/22 tax year so far are higher than any other year for the past decade.

HMRC published monthly property sales for August: Monthly property transactions completed in the UK with value of £40,000 or above – GOV.UK (www.gov.uk)

Sarah Coles, personal finance analyst, Hargreaves Lansdown:

“The property market was just pausing for breath in July, and set off again in August – albeit at a slightly less frenetic pace. The withdrawal of most of the stamp duty break at the end of June meant buyers made a dash for the finish line, leaving a gap in July. However, August’s figures show that this was a temporary pause rather than a full stop.

Sales are roughly where they were at this time of year before the pandemic. So for example, there were 111,600 transactions in August 2019.

It goes to show that the ongoing game of musical houses isn’t over, as some of those living within commuting distance of city centres make a break for the country, those in the centres take a step to the outskirts, and new buyers move into their vacated flats. This has all been supported by mortgage rates, which are still at historic lows, so buyers are able to lock in a rate that makes a move affordable.

August’s figures will be a relief for homeowners, especially those who bought at the height of the frenzy in June, who were worried that July’s dramatic fall in property sales was just the initial drop of a vertiginous plunge. It’s also a reasonable sign that falling house prices in July aren’t likely to be the beginning of a more dramatic drop in the immediate future.

The figures are also good news for those who have struggled to sell, particularly in and around cities, who will be relieved that they haven’t missed the boat and that buyers are still on the hunt for a new home.”

Kindly shared by Hargreaves Lansdown