The number of property transactions in the UK during the past month is set to break previous records. Knight Frank, a real estate agency and consultancy firm, published the findings of its research which showed that the number of transactions in June was set to reach record highs.
What baffles most experts is that along with the number of transactions, home prices have also steadily increased. Interestingly, June marks the third consecutive month where home prices have hit record numbers – displaying an average increase of 0.8 per cent or £2,509. This is the first time since 2015 that home prices have reached the high mark for this particular time of the year.
Knight Frank further stated that it was a record month all across the island nation, with central London and the London suburbs in particular. The country house market also peaked during the month-long high. A crucial factor that accounts for the meteoric rise is the stamp duty holiday deadline. Initially slated for March, 2021, it was deferred until the end of June and hence, the frenzy.
Tom Bill, Head of UK Residential Research, Frank Knight, states, “June was a predictably busy month for the UK property market ahead of the stamp duty holiday deadline. What happens now is a return to normality. The holiday distorted activity and put upwards pressure on prices in the first half of the year as people acted ahead of the deadline. However, others decided to wait for calmer conditions. In other cases, sellers were unable to find purchase options of their own as properties sold quickly.”
Record low mortgages, coupled with the desire for more space in a post-pandemic world and the belief that ‘there is no time like the present’, have been responsible for the frenzied buying. The situation should right itself if given some time and experts expect that the markets will cool down on their own. A greater balance between supply and demand is predicted to return in the second half of the year. This will steady the markets in the long run but for now the buying spree continues.