BBC NEWS – House sales and prices see early spring surge

By Kevin Peachey
Personal finance correspondent, BBC News

House sales and property prices recorded an early spring surge amid government moves to stimulate the housing market.

Data from HM Revenue and Customs (HMRC) shows that UK property transactions in March hit the highest monthly level since modern records began in 2005.

The housing market has been relatively immune to the Covid crisis as people reconsider where they want to live.

Official data also shows average UK house prices rose 8.6% in a year.

There were 180,690 UK property sales in March, the non-seasonally adjusted HMRC figures show, which was more than double the number in March last year and 50% higher than February.

Stamp duty holidays across the UK were set to finish at the end of March, but announcements – including in the Budget on 4 March – extended these deadlines in England, Wales and Northern Ireland into the summer.

A new guarantee scheme for low-deposit mortgages in the UK was also announced in the Budget. These home loans are now available.

“What will be interesting to see is whether this growth is sustainable or simply a reaction to the stamp duty holiday. The next three months will give us a better indication of this,” said Gareth Lewis, commercial director at property lender MT Finance.

“As much as this latest lockdown in particular has been hard, it is encouraging that people have not hunkered down and retreated but carried on with their plans to move.”

That demand for moving home will not be cheered by many first-time buyers who have now seen property prices record their highest annual growth rate in more than six years.

The Office for National Statistics (ONS) said average house prices increased over the year to the end of February in England to £268,000 (up 8.7%), in Wales to £180,000 (up 8.4%), in Scotland to £162,000 (up 8%) and in Northern Ireland to £148,000 (up 5.3%).

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Rupert Briggs

About the author

Rupert Briggs | Director, Epsom

Hi, my name is Rupert and I’m the owner and Director of The Personal Agent Ltd. Richard and I launched The Personal Agent in 2004 with a vision of it being a very different kind of agency. Having worked for local estate agents, we knew what the market was looking for – a personal service tailored to the needs of those who trust us with their properties, one that genuinely listens, adapts, and consistently delivers on its promises. I am passionate about ensuring that each and every landlord and vendor we work with only ever receives the very best in service, marketing and cutting-edge innovations to ensure that they achieve their property goals and we live up to their expectations.