House sales picked up sharply in March as stamp duty holiday was extended

House sales surged in March after signs the extension of stamp duty had an impact on the housing marking, claim surveyors.

Half of property professionals reported an increase rather than a decrease in agreed sales.

This marked the strongest sales surge since last August, said the Royal Institution of Chartered Surveyors (Rics).

A stamp duty holiday had been due to end on March 31 but was extended in the recent Budget.

The stamp duty “nil rate” band will now not revert to normal levels until the autumn. Currently the stamp duty threshold under the holiday is £500,000.

Read more:

This will fall to £250,000 from July 1, and from October 1 it will fall to £125,000, where it usually sits.

The pick-up galvanised expectations that sales activity will increase over the next three months, with a balance of 35% of surveyors predicting an uptick. This was the most upbeat reading on this measure since January 2020.

Rics said that with demand for homes continuing to outstrip supply, house prices increased, with a net balance of 59% of surveyors seeing an increase since February’s survey was published.

House prices were reported to be on the up across all of the UK’s nations and regions, with the strongest momentum seen in the north west of England, Yorkshire and the Humber and Northern Ireland.

An overall balance of 60% of surveyors expect prices to be higher rather than lower in 12 months’ time.

There were indications that the supply of properties coming on the market could increase in the coming months, with a net balance of 29% of surveyors reporting an increase rather than a decrease in appraisals.

READ  Biden expected to extend the national ban on evictions through March 2021

Simon Rubinsohn, Rics chief economist, said: “The results from the latest Rics survey show that the decision of the Chancellor to extend the stamp duty break and then taper its expiry has had an immediate impact on the housing market, with all the key activity indictors rebounding in March.

“However, the headline numbers as well as the anecdotal remarks from respondents clearly demonstrate that across much of the market, demand is outstripping supply and that as a result, prices continue to move upwards.”

Additional reporting by PA



Please enter your comment!
Please enter your name here