UK monthly property transactions hit a record high in June as prospective homebuyers scrambled to complete purchases before the stamp duty holiday tapered at the end of the month, new figures released today show.
HMRC said seasonally adjusted monthly transactions in June reached 198,240, the highest since records began.
The surge in transactions has been driven by consumers rushing to buy houses to ensure they did not miss out on the financial benefits on offer from the stamp duty holiday.
On a non-seasonally adjusted basis, HMRC estimated 213,120 sales took place in June.
After 30 June, stamp duty land tax will not be charged on the first £250,000 of a house purchase, down from £500,000.
House prices in the UK have soared since the stamp duty holiday was introduced, with latest data from Rightmove showing house prices climbed 5.7 per cent annually in July to reach £338,447.
The volume of transactions climbed 74 per cent in the last month alone, up from 113,850 in May, HMRC’s data showed.
Speaking to City A.M., Chris Sykes, mortgage consultant at Private Finance, said: “The number of transactions in June was enormous… the stamp duty holiday extension really has worked on saving thousands of people a lot of money where they would have likely missed the previous deadline.”
However, Sykes pointed to severe supply and demand imbalances in the market, highlighting that properties are being snapped up as soon as they come market.
He said buyers are often prepared to pay much higher than the original asking price to secure sought after homes, suggesting that recent prices rises could extend into the coming months.
Andrew Southern, chairman of property developer Southern Grove, said: “Today’s data paints a picture of a breathless stampede to the finishing line as frantic buyers battled to get their deals inked before the stamp duty holiday began to taper.”