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Stamp duty cuts, along with increased demand for homes with gardens since the pandemic, have pushed confidence in the housing market to a four-year high, according to surveyors and realtors.
A net balance of 44% of Royal Institute of Chartered Surveyors (Rics) members reported an increase in prices, the strongest reading since 2016, according to their latest monthly snapshot. This compares with 13% in July and marks a dramatic change from -33% in May. Virtually all parts of the UK are now seeing a price increase. The only exception is London, where Rics members reported that prices have been more or less flat for the past two months.
Figures from Rics suggest an increase in interest in homes with gardens in the wake of the Covid-19 pandemic, with 83% of respondents expecting demand for such homes to increase in the next two years, and 79% forecasting an increase in demand for properties near green spaces.
The August rebound in the housing market was driven by those looking to take advantage of the stamp tax holiday, Rics said.
The cut, announced by Chancellor Rishi Sunak earlier this year, means no stamp duty on houses under £ 500,000 in England and Northern Ireland, and £ 250,000 in Scotland and Wales, with discounts applied. above those thresholds.
A net balance of 63% of surveyors and realtors reported an increase in buyer interest during the month (those who reported lower interest were deducted from those who saw a spike). However, the longer-term view remains more cautious.
Other surveys of mortgage lenders Nationwide and Halifax have also shown sharp increases in home prices.
Marc von Grundherr, Director of London-based real estate agent Benham and Reeves, said: “The UK property market continues to accelerate on the momentum of a runaway freight train, and the fuel of a stamp duty suspension is not only attracting buyers to act, but it is causing homes below the £ 500,000 threshold to sell at a great price.
