Residential housing transactions up by a third in December

Residential housing transactions up by a third in December 1024 576 NGI Residential Mortgages

The number of residential housing transactions in the UK was 31.5 per cent higher in December 2020 than in the same month the previous year.

The provisional seasonally adjusted figure from HMRC shows 129,400 residential housing transactions took place in December last year, a rise of 13.1 per cent compared to November 2020.

The HMRC figure for non-residential transactions in December is 10,470, 4.5 per cent higher than December 2019 and 14.5 per cent higher than November 2020.

However, HMRC says that the figures should be treated with caution due to the impacts of the coronavirus pandemic and the stamp duty holiday, which have produced uncertainty in seasonal trends.

Speaking about the figures, Coreco managing director Andrew Montlake says: “December saw property transactions reach fever pitch as people rushed to beat the stamp duty deadline.

“The increase of nearly a third on the previous year is all the more impressive given that a lot of people in the latter stages of 2019 were keen to get into a new home before the Brexit endgame and the uncertainty that might entail.

“The worry now is of a collapse in property transactions from April onwards when the stamp duty holiday ends, although overall levels are likely to be roughly the same as in 2020.

“Many people are banking on the Chancellor caving into pressure and extending the deadline, but for now activity levels in the property and mortgage market are nothing short of frantic.”

Landbay chief executive John Goodall says: “December 2020’s housing transactions are around one third higher than the same month in 2019 and the highest in more than 10 years.

“We have witnessed a rollercoaster of housing transactions as a result of Covid lockdowns followed by pent-up demand bursting through once restrictions were lifted. Much of this demand has been fuelled by the stamp duty holiday and we have seen landlords taking advantage of this and expanding their property portfolios.”

* Content Source – Mortgage Strategy.