More house offers accepted as stamp duty holiday ‘works’

The number of house offers accepted in UK markets between 8 July and 3 August was 146% above the five-year average for properties valued at less than £1.5m, new analysis from Knight Frank has revealed.

The real estate consultant suggested that this section of the market is where the impact of the stamp duty holiday, announced on 8 July, would be felt most.

The stamp duty holiday, which runs until March 2021, applies below £500,000 and can save buyers up to £15,000.

On a multi-million pound property, Knight Frank suggested the saving will be a small percentage of the transaction price but added that it “represents a meaningful discount” for the vast majority of UK buyers.

The real estate consultant described the residential property market as “robust as it has been for many years”.

The analysis also indicated that the number of new prospective buyers registering in the same period was 100% higher for sub £1.5m properties, compared to a 70% increase above that value. The number of viewings has also grown by more for sub £1.5m properties, rising 46% against the five-year average. The data showed that above £1.5m, the increase was 13%.

Knight Frank stated: “The holiday, it must be concluded, is working. Whether it should become a permanent arrangement is something the Government should consider.

“More companies are announcing job cuts and any additional financial friction around the mobility of labour or people unfortunately made redundant could prove counter-productive. If more people are moving home, that is good for the economy well beyond the confines of the housing market.”

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