Home costs dip as sellers race to agree offers earlier than finish of stamp responsibility vacation | Enterprise Information
Property asking costs have dipped as residence sellers scramble to agree offers earlier than the top of the stamp responsibility vacation, new figures counsel.
Rightmove mentioned costs for residences and homes marketed between 6 December and 9 January had been down 0.9% on the earlier month.
The property web site mentioned that dragged its measure of annual progress to three.3%, from 6.6% a month a earlier.
Rightmove reported that the market was nonetheless busy, with the variety of consumers contacting brokers up 12% and gross sales agreed in January to this point up 9% on the identical interval final 12 months – when the market had additionally been robust after the December 2019 basic election end result.
Transactions slumped earlier in 2020 as the primary coronavirus lockdown took its toll however the reopening of the market and a stamp responsibility vacation introduced in the summertime by chancellor Rishi Sunak helped revive demand.
The coverage noticed the brink for paying stamp responsibility briefly raised from £125,000 to £500,000 till 31 March this 12 months.
Rightmove mentioned the autumn in asking costs got here “with some new sellers nonetheless hoping to tempt consumers and squeeze in a sale earlier than the stamp responsibility vacation ends”.
Nevertheless it mentioned that new consumers regarded unlikely to beat the deadline with the common time to finish a purchase order now standing at over 4 months.
Rightmove predicts that with greater than 600,000 properties bought topic to contract, round 100,000 will face an surprising tax invoice as they miss the 31 March closing date.
Tim Bannister, Rightmove’s director of property information, mentioned: “As we enter the brand new 12 months and a brand new lockdown, the housing market stays open however is concentrated on the upcoming finish of the stamp responsibility vacation and on the challenges of the pandemic.
“These main influences on mover behaviour are clouding the 2021 outlook, however Rightmove’s early January market-leading indicators of purchaser demand and the variety of precise gross sales being agreed are trying sturdy.”