Home gross sales fall in July as stamp obligation vacation ends

The variety of home and flat gross sales fell by practically two-thirds final month after patrons accelerated their purchases in June to beat the top of the total stamp obligation vacation, official figures confirmed.

The provisional seasonally adjusted estimate of residential transactions in July was 73,740, or 62.8 per cent decrease than in June when it jumped to 198,400, Income & Customs mentioned yesterday.

July’s information displaying a provisional non-seasonally adjusted estimate of 82,110 residential property gross sales was beneath the month-to-month common of 145,000 of the primary six months of the yr.

It compares with a frantic June, when HMRC reported the best month-to-month UK complete for the reason that introduction of the statistics in April 2005 and greater than double that of a yr earlier.

In England and Northern Eire, patrons raced to finish purchases earlier than the quickly elevated “nil fee” band to £500,000 for residential stamp obligation land tax ended on June 30. This aid has since been tapered to £250,000 and the nil fee band will revert again to £125,000 on September 30.

Regardless of the drop-off in gross sales exercise final month, the HMRC information confirmed purchases had been 1.8 per cent larger than in July final yr, when exercise was nonetheless hit by the near-total housing market closure from March till mid-Could.

Property market specialists mentioned that whereas exercise has handed its peak, demand stays robust because the pandemic and home-working continues.

This month the Royal Establishment of Chartered Surveyors reported that inquiries began shrinking in July, bringing to an finish a four-month constructive run, whereas Nationwide’s home worth index confirmed values dropping again by 0.5 per cent within the first such fall since March.

House sales fall in July as stamp duty holiday ends