During March 2021 almost 162,000 sales were agreed (according to Twenty CI data). This is a 77% year-on-year increase from 2020. This figure is the highest that Twenty CI data has ever seen since they started recording data back in 2009.
Since the Stamp Duty Land Tax (“SDLT”) holiday was implemented in July 2020 sales agreed figures have risen dramatically with all but two months being in the top 10 list of all time in terms of sales agreed. The two exceptions being December 2020 and January 2021. This is typically the quietest time of year for property sales due to the cold weather and Christmas festivities.
However, what is slightly surprising is that mid to upper-priced properties have increased in sales most significantly. Particularly properties above £750,000. This suggests that the SDLT holiday is not the only factor in such an increase in sales. The SDLT saving is maximised once the price reaches £500,000 with a saving of £15,000, which doesn’t increase thereafter. This suggests that other factors may have come into play such as lifestyle changes due to COVID-19, with the desire for outdoor space and more inside space due to more people spending time in their homes due to ‘working from home’. Therefore, we suggest these factors combined have caused housing demand to explode with demand outstripping supply.
How can we help?
At Hawsons we have a dedicated team of property and construction accountants at our offices in Sheffield, Doncaster, and Northampton. Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.
More from our property experts
You can find all of our latest property and construction sector news here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
Free initial consultation
Tax Partner, Sheffield
0114 266 7141
What changes have been made? With effect from 1st July the Stamp Duty Land Tax (SDLT) for residential property changed to the following rates: £0 - £250,000 = 0% £250,001 - £925,000 = 5% £925,001 - £1,500,000 = 10% £1,500,000 + = 12% Please note that in addition to...
The Office of Tax Simplification (OTS) has recommended that the government double the Capital Gains Tax (CGT) reporting and payment deadline for disposals of UK residential property to 60 days. Rules introduced in April 2020 mean that a UK resident disposing of UK...
New tax obligations from April 2023 From 6 April 2023, significant changes will be made to the Self-Assessment reporting system for landlords with gross rental income above £10,000 per tax year. Bringing landlords within the scope of MTD is part of HMRC’s plan to...