The mortgage market shows signs of stability as the property market heads towards the end of the stamp duty holiday on 30th September. From 1st October, the nil rate band will revert to the standard amount of £125,000.
Data released by mortgage technology provider Twenty7tec, shows that the mortgage market remain strong following the end of the stamp duty holiday incentive for homebuyers.
The monthly report also supports the view of an increasing number of observers that the market will remain strong after the end of the SDLT holiday on 30th September. It shows the percentage of searches in the £150k- £250k valuation bracket at its lowest for 10 months, despite this being the price bracket in which relief if available, acknowledging that property price rises have pushed more property into higher brackets.
The latest research from RICS has identified that a lack of new homes for sale in Britain boosted prices again last month even as the housing market slowed following a partial withdrawal of a pandemic emergency tax break for property purchases. New buyer enquiries slipped in August to its lowest level since January, as did RICS’ x`measure of agreed sales.
But with demand still far in excess of supply – driven by people seeking bigger homes as they work remotely more often after the coronavirus pandemic – the vast majority of surveyors polled by RICS – a net 73% – reported rising house prices, albeit down from a reading of +79% in July.
Other surveys have also pointed to continued house price growth since July when a year-long exemption from the stamp duty tax on house purchases was halved in scale in England and Northern Ireland and expired altogether in Wales. Scotland ended the incentive in April.
James Tucker, CEO of Twenty7Tec, commented:
“After 18 months of constantly moving markets, it feels a little odd to report on stability. August 2021, aside from the slight market side effects of the bank holiday, was broadly the same as July 2021. No major shocks, no major moves.
Is this the long-desired return to normal or the calm before the storm? Let’s see what September brings.”
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