UK

Number of enquiries from potential purchasers starts to fall as suspension of levy finishes

Home buyers hesitate as stamp duty holiday ends: Number of enquiries from potential purchasers starts to fall as suspension of levy finishes

  • Estate agents say new buyers enquiries started to fall for the first time in July 
  • It brings to an end a four-month ‘positive streak’ for the UK housing market
  • Comes as stamp duty holiday introduced by Rishi Sunak in England is being gradually reduced

The number of enquiries by house hunters has started falling as stamp duty savings come to an end.

More estate agents said contacts from new buyers were falling rather than rising in July, according to the Royal Institution of Chartered Surveyors (RICS).

It brings to an end a four-month ‘positive streak’ for the UK market based on the number of enquiries.

The stamp duty holiday introduced by Chancellor Rishi Sunak in England is being gradually reduced from July and the ‘nil rate’ band will revert to normal from October.

More estate agents said contacts from new buyers were falling rather than rising in July, according to the Royal Institution of Chartered Surveyors (RICS)

This means many buyers agreeing deals now are likely to miss out on stamp duty savings. The number of transactions has slowed most notably in Yorkshire and the Humber, the East Midlands and East Anglia, the report said.

However, a lack of supply is still underpinning price growth, the institution added.

Growth in prices was noted across the UK, with the North of England, Wales and East Anglia recording particularly strong growth, whereas London’s was more moderate.

Simon Rubinsohn, chief economist at the institution, said: ‘Although the tapering in stamp duty is beginning to have some impact, the overall tone to the market remains firm.

The stamp duty holiday introduced by Chancellor Rishi Sunak in England is being gradually reduced from July and the 'nil rate' band will revert to normal from October

The stamp duty holiday introduced by Chancellor Rishi Sunak in England is being gradually reduced from July and the ‘nil rate’ band will revert to normal from October

‘A strong message is that buyers are continuing to place a premium on space.’

A net balance of 46 per cent of professionals saw a fall in new listings in July, marking the weakest reading for new instructions since the early days of the coronavirus lockdown in April 2020.

A net balance of 66 per cent of professionals predict that house prices will be higher in a year, up from 56 per cent in June.

Demand from tenants looking to rent new homes remained strong in July, Rics said.

With new instructions from landlords remaining in decline, rents are expected to rise over the next three months.

Rental expectations in London have seen a particular turnaround, with a net balance of 47 per cent of professionals expecting rents to increase.

Advertisement


Source link

Related Articles

Back to top button