Property transactions rocket by over 48% in February

Featured in Mortgage Finance Gazette

House sales shot up by 48.5% in February compared to the same month last year, the latest government figures revealed today. According to the latest data from HMRC there were 147,050 property transactions last month which was 23% higher than in January 2021. This is the highest number of transactions since March 2016 – just prior to the introduction of the stamp duty surcharge on second homes. This year’s vast leap in sales demonstrates the impact the stamp duty holiday has had on the property market - in particular the effect of original March 31 deadline.

Indeed, Mike Scott, chief analyst at estate agency Yopa, said: “Sales were soaring as we approached the deadline for avoiding stamp duty, which has since been extended to the end of June (except in Scotland).” He added:  “This confirms that the stamp duty holiday did indeed have its intended effect of kick-starting the housing market after the end of the first lockdown, and the sales that were agreed over the summer and autumn are now coming through in the figures for completions.

“It remains to be seen what will happen to market activity after the new deadlines at the end of June and September. At Yopa, we believe that there is still a considerable amount of pent-up demand for a home move.”

 The figures are published exactly a year to the day the Prime Minister announced the first national lockdown and the property market closed.