UK home sales plummeted in July due to end of SDH.

Property transactions fell 62% in July, just as the SDH ended.

Home sales fell nearly two-thirds in July after tens of thousands of home buyers rushed to complete their purchases to beat the Rishi Sunak SDH deadline in late June.

Following a record spike in activity in June, when 213,370 UK homes changed hands, transactions fell 62% to 82,110 in July, according to official data, after the government cut its tax exemption for buyers in England and Northern Ireland.

HM Revenue and Customs, which released the new data, said it showed that home buyers were “completing property transactions earlier to take advantage of government housing market policies.”

HMRC also said that after the rule changes, “There has been an expected but noticeable decrease [in sales].”

Until June 30, the first £ 500,000 spent on a property was tax-free, saving a buyer up to £ 15,000. However, Sarah Coles, a personal finance analyst at investment firm Hargreaves Lansdown, said the SDH had a “powerful psychological impact that went far beyond the cash buyers could save.”

Sunak announced a £ 3.8bn SDH in July 2020 to prevent a collapse in the housing market during the first Covid shutdown. It was scheduled to end on March 31 this year, but it was extended until the end of June a few weeks before.

UK property market could slow further.

On July 1, the SDH was lowered, with the threshold at which the property purchase tax begins to drop to £ 250,000. This so-called ‘zero rate band’ will return to its pre-pandemic level of £ 125,000 on 1 October.

The stamp duty holiday has been credited with driving a mini-boom in the property market and rising prices. Last week, figures from the Office for National Statistics covering the period through June 30 showed that house prices rose at their fastest pace in nearly 17 years.

However, several other factors have also contributed to stronger-than-expected home price growth during the pandemic. These include new government mortgage guarantees and a “race for space”, with many home buyers prioritizing properties with larger gardens and more space to work from home.

Despite the considerable drop in sales in July, data from the HMRC showed that transactions were still 1.8% higher than in July last year when activity was still affected by the almost complete closure of the market for several months.

HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!

Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!

Twitter: @HichLTD

Facebook: HICH-LTD

We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the full external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.

Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.

If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, don’t hesitate to get in touch with us at hichinfo@aol.co.uk.