Low cost mortgages and a continued migration as a consequence of new coronavirus housing preferences continued to energy the UK housing market in August, as transactions headed upwards but once more.
Regardless of the top of the stamp obligation vacation, and the truth that August is often a quiet month, HMRC estimated that there have been 106,150 non-seasonally adjusted UK residential transactions final month, near ranges recorded previous to the coronavirus pandemic.
That is 24.8% larger than a yr earlier and an enchancment from the earlier month, when gross sales had dropped by over two-thirds.
In August 2019 transactions had been 111,600.
The info confirmed that the full for UK residential transactions is the very best for the interval between April and August in the course of the earlier 10 monetary years, partially as a result of burst in exercise earlier than the top of the stamp obligation vacation.
Availability of mortgages for first-time patrons is spurring in the marketplace.
“Earlier than the pandemic, you’d have been laborious pressed to discover a mainstream mortgage lender to lend greater than 4.5 occasions a typical first-time purchaser’s revenue,” stated Jamie Thompson of Manchester-based Jamie Thompson Mortgages.
“Right now, a first-time purchaser can borrow as much as 5.5 occasions their revenue with a mainstream excessive road lender. This permits them to massively improve what they’ll bid on their first home, which not solely drives transaction volumes but additionally helps costs.”
Learn extra: UK property listings fall as market cools
Transaction information additionally confirmed that the provisional seasonally adjusted estimate of UK residential transactions in August 2021 was 98,300 — 20.8% larger than August 2020 and 32.0% larger than July 2021.
“We count on to see one other spike in transactions in September, one final stamp obligation vacation hurrah earlier than an autumn lull because the market catches up with the transactions which have been pulled ahead by the stamp obligation vacation,” stated Anthony Codling, CEO at twindig.
Learn extra: Finish of stamp obligation vacation hits UK mortgage approvals
As transactions have stored up tempo, property inventory has fallen within the UK and the pipeline could also be slowing. The most recent RICS residential housing survey confirmed that property brokers noticed one other fall in new houses listed in the marketplace.
New purchaser enquiries additionally fell for the second month in a row, with a internet stability of -14% of respondents saying they’d seen even fewer home hunters (following a -9% studying in July).
Agreed gross sales additionally declined on the similar time — with a internet stability of -18% reporting a fall.
The most recent Halifax Value Index additionally confirmed that common home costs headed larger once more in August, with the price of a property growing by 0.7% or £1,789 ($2,477).
Again-to-back month-to-month worth good points have now pushed the price of a typical residence to a file of £262,954, topping the earlier excessive of £261,642 recorded in Could this yr.
Watch: Home costs stage shock surge regardless of stamp obligation vacation drawing to a detailed