Just days after the UK celebrated reopening with ‘Freedom Day’, data released by the HM Revenue and Customs (HMRC) showed that UK property sales hit a new record high in June.
Two weeks after the Halifax Building Society released data which showed that UK house prices fell for the first time in five months in June, an estimated 213,120 property sales were completed in the UK during June.
DailyInvestNews asked at the time if the UK Housing boom was over? With demand seemingly outstripping supply, there is an expectation that house prices could rise further.
“Frenzied Rush” in June
Before the end of the stamp duty holiday, brought in to provide a boost to the housing market during the Coronavirus pandemic, there was a “frenzied rush” of property sales. Last month, UK property sales hit their highest monthly UK total since comparable records began in April 2005. June’s figure was 216.1% higher than the same time a year before and 108.5% higher than May 2020’s figure.
London estate agent Jeremy Leaf said:
“These figures clearly illustrate the frenzied rush to the finishing line for buyers to take advantage before the stamp duty holiday drew to a close.
“However, activity has reduced since, particularly in London where the savings were greatest. Early signs are that sales will be down significantly but we have noticed nearly all of our transactions are continuing with very few renegotiations. This leads us to believe prices will not be markedly different over the next few months.”
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said:
“There’s been a huge imbalance between buyers and sellers during the spring and early summer, which has meant panic buying, bidding wars, and the return of gazumping.”
“It’s also easy to feel you don’t have any other choice, so you end up pushing your budget and over-stretching your finances. Months down the line, you could seriously regret the lifestyle compromises you’ve had to make,” she said.
