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.
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