RICS: Stamp duty holiday helping to lift demand
The stamp duty holiday introduced from the 8th July is helping to lift demand, The RICS UK Residential Market Survey suggests.
In July a net 75% of surveyors saw a rise in new buyer enquiries, the second month in a row that demand has rebounded significantly. A net 59% also saw instructions rise, up from 41% in June.
RICS noted that the stamp duty holiday is having a big impact on demand based on anecdotal evidence.
Ross Counsell, chartered surveyor and director at property buyers, Good Move, said: “Today’s RICS statistics reveal the UK housing market gained further momentum last month which showcases the ongoing recovery – something we’re all happy to hear after a turbulent few months.
“We have seen an increase in new buyer queries, as well as a rise in new listings and sales. The measurements employed by the government such as the stamp duty holiday has positively impacted this spike.
“These latest statistics should hopefully help reassure buyers and sellers in the UK that the property market is starting to return to “normal”.
“However, we must not forget that we are now in a recession, therefore we advise buyers who are looking to purchase a home during the recession to thoroughly check out the property before they commit, and ask important questions such as how much work the property may need to ensure they’re protecting their finances and getting the best possible deal.
“Buyers must not get swept away in a low house price or jump at the first-rate a mortgage lender offers. Purchasing a home during this time is a big decision and one that needs to be thought about carefully.”
A net 26% of surveyors expect an increase in sales, however a net -10% expect sales to tail off over the course of the next 12 months – likely due to the stamp duty holiday expiring in March 2021.
Tomer Aboody, director of property lender MT Finance, said: “With the stamp duty holiday in place at least until March and hopefully longer, this should help support the housing market to a degree.
“No doubt there will be some negativity and a potential fall in confidence after government schemes such as furlough have ended but a possible downward trend should be eased by banks already preparing a loss buffer (HSBC), allowing them to work more closely with borrowers who might be struggling with repayments.”