Government should allow leeway - Comment on the UK property transaction statistics for October from Richard Pike at Phoebus Software

21 October 2020

Richard Pike, Phoebus Software sales and marketing director, says: “Non-seasonally adjusted residential transactions in September are up from 2019’s figures. This is a welcome bounce back after the slump over lock down and likely due to continued demand spurred on by the stamp duty holiday, especially when we see the colossal spike in comparison to July and August’s figures.

“The demand is clearly having an effect on house prices which are starting to rise quite sharply. According to a study by Rightmove, the average price of a property coming to market rose by 1.1% in the last month. It is likely that pricing has been boosted by borrowers moving to more “COVID friendly” housing options, as people are willing to pay more for properties that reflect their ideal requirements as a result of lockdowns. However, the spike in transactions could also being contributed to by existing homeowners who can either afford to put down larger deposits and therefore avoid the rush of the one-day 90% LTV sales, or who can afford to offer above asking prices which we have seen happen in the more rural parts of the country.

“As we look forward, house prices should remain strong for the six months to March 31st. However, the effect on the property market of the “conveyancing system” not being able to cope with mass completions at the end of March remains to be seen. The Government should be looking at allowing some leeway, i.e. if an Offer Letter has been produced by 1st March, then it should be allowed until 15th April to complete and receive stamp duty benefit.”