According to HMRC, more residential properties were sold in 2020 than last year
Despite the COVID-19 pandemic, residential property transactions increased.
According to HMRC data, there were 19.3% more residential property transactions in November 2020 compared to the same period last year.
Last month there were 115,190 seasonally adjusted transactions, up from 96,570 in November 2020.
The number of properties that changed hands also increased by 8.6% from October 2020.
Anna Clare Harper, CEO of asset manager SPI Capital, said: “The numbers represent a recovery rather than a boom.”
“This is, at least in part, policy-induced. Currently, transactions are being stimulated by the temporary reduction of the Stamp Duty Tax, as well as by the release of suppressed supply and demand, and the desire to improve the environment after the closing.”
“Transactions have been dominated by second-time buyers, who are generally trading in favor of more space, rather than first-time buyers’ stepping on the ladder.”
“The outlook for 2021 is encouraging.”
Jeremy Leaf, North London Real Estate Agent and former RICS Residential Chairman said: “Transactions are always a better indicator of the health of the market than the more volatile house prices. However, despite the fact that these numbers show an accelerating trend, they reflect sales that were agreed several months before.”
“Since then, the market has approached hibernation as is traditional at this time of year.”
“It will be at least a few months before transactions align with the reduced activity that we have been seeing on the ground for the past few weeks.”
“However, the outlook for 2021 remains relatively positive considering the determination of the overwhelming majority of buyers and sellers to complete their moves, even if inevitably, some will not meet the stamp duty deadline.”
“The residential transaction data highlights that the fundamental drivers of value in residential property remain strong – our homes have never been as important as locked up.”
Most experts agree that 2021 will be a year of recovery for the UK property market. Although the first forecasts assured a terrible crash and the loss of purchasing power, experts have opined in recent months that the coming year will be full of opportunities for the UK real estate sector.
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