A veritable stampede to cross the finishing line, but... - Comment on the HMRC property transaction figures for June from Richard Pike at Phoebus Software
Richard Pike, Phoebus Software sales and marketing director, says “The figures from HMRC confirm, if confirmation was needed, that June was a bumper month for the property market. There was a veritable stampede to cross the finishing line as determined buyers got their purchases through before the end of the stamp duty holiday.
“As we have seen this has pushed house prices up exponentially whilst at the same time created another anomaly. More people have, reportedly, been selling and moving into rented accommodation to put them at the end of the chain, giving them a better chance of securing the property they want. However, this is putting even more strain on the rental market, where prices are also rising as demand increases.
“There are two problems for the market as we make our way into a post-lockdown world. Firstly, the old problem of supply. Unfortunately, this is a long-term problem, that seems to be stretching into the longer term all the time. As new-build developments, planned to alleviate the housing stock problem, are affected by materials and labour shortages we remain reliant on existing stock. Secondly, affordability. House prices are reaching the point where many will be priced out of the market with rising inflation putting more pressure on already ‘Covid’ squeezed finances. It’s great to see the market as buoyant as it is, but has the stimulus provided by the SDLT holiday pushed things too far?”
Published: 21 July 2021