After Chancellor Rishi Sunak announced his decision to remove stamp duty on sales until April next year, there was always going to be interest in how this might effect the property industry. Last week, the NAEA announced UK property figures for July, and with the exemption of stamp duty in mind, the results are not surprising.
The overriding headline is that sales are at a thirteen year high, with sales per branch not reaching current figures since June 2007. Branches on average sold 13 houses throughout the month of July representing a massive 44% increase from July of last year.
As you might expect, the increase in sales has come from an increase in demand, undoubtedly due to the stamp duty exemption. Between June and July there was a 13% increase in house hunters signing up at branches, indicating the effects of the Chancellors decision. This is also a significant increase in comparison to last July. Year-on-year there has been a 35% increase in new signups at branches, representing a large incline in demand.
Perhaps surprisingly, despite the increase in demand, sale prices have declined. 8% of sales were completed above the asking price in July compared to that of 10% in June. Prices agreed below the asking price tell a similar story, with 60% of sales being agreed below asking price during July.
Finally, supply of properties has played a role in these figures too. Between June and July of this year there has been a swift incline in the number of properties for sales across estate agent branches in the UK. During June of this year agents had, on average, 37 properties on their books. During July this figure rose to 43 properties, showing a sharp rise in the number of properties for sale and perhaps giving an insight as to why prices have dropped.
Overall, it has been a busy time for estate agents with plenty of movement still expected in the months to come. We’d be more than happy to help with your latest move, so come and visit us at our Newton Abbott office to get things started!