April Monthly Housing Market Update

117,860 UK Residential transactions were recorded by HMRC in April 2021.

 

The UK Housing Market has seen a fall in April, slowing down after the surge of sales that occurred in March. Uk Residential transactions have dropped by 35.7% since March, with the figures being 179.5% higher than April of last year when the national lockdown hit.

 

It is unclear why the figures have dropped in April since the Stamp Duty holiday is still in effect and the Help To Buy Scheme began on the 1st of April allowing first-time buyers to apply for 95% mortgages. It is possible that due to the number of sales in March, there were simply fewer homes on offer for budding buyers.

 

Non-residential transactions in April saw figures of 10,160. This is a fall of 11.4% since March and a rise of 89.0% since last April. As the UK starts to come out of lockdown, commercial buildings will be used more and this explains why non-residential transactions are much higher now compared with the same time last year.

 

Things to note…

As announced by the chancellor in February 2021, the Stamp Duty Holiday is still in effect. The Stamp Duty holiday allowing buyers to purchase a home in England and Northern Ireland without a stamp duty cost for low-value homes, with the nil rate set to £500,000. The purpose of this change was to facilitate buyers and get the housing market running. The stamp duty nail band rate will reduce to £250,000 from July 1st, and then to £125,000 from October 1st.

 

In Scotland, the stamp duty nil rate of £250,000 and will stay at this rate until March 31st.

 

In Wales, the stamp duty nil rate of £250,000 will stay until June 30th.

 

What does this mean?

 

Changes to the UK housing market as schemes introduced by the government have so far spurred on the housing market and it has seen its strongest period in the last decade. A dip in transactions during April could be due to a lack of supply after the boom in March. It may rise again in May and through the summer while government financial schemes remain in play.

 

Jun 3rd, 2021

NewsUncategorized