Residential property transactions rose 15.6% in August following introduction of stamp duty holiday.
House sales rose 15.6% in August following the introduction of the stamp duty holiday – helping to protect nearly three quarters of a million jobs in the housing sector and wider supply chain, new figures revealed today.
After a 14.5% rise in July, residential property transactions in August rose a further 15.6% as more people decided to buy a new home or move house. The increase in transactions came after the Chancellor announced a stamp duty holiday at the start of July that will last until March next year.
The move has helped to protect nearly 750,000 jobs, benefitting businesses across the housing supply chain and beyond, with the Bank of England estimating that households who move home are much more likely to purchase a range of durable goods, such as furniture, carpets or major appliances.
It is expected that among others housebuilders, estate agents, tradespeople, DIY stores, removal and cleaning firms could all benefit from the increased activity.
Chancellor Rishi Sunak said:
As part of its Plan for Jobs, the government introduced a temporary stamp duty holiday for residential properties worth up to £500,000 effective from 8 July 2020 until 31 March 2021.
The holiday means nine out of ten people getting on or moving up the property ladder will pay no SDLT at all. This measure delivers an average saving of £4,500 in SDLT.
The government wants people to feel confident to move, to buy, to sell, to renovate, and to improve their homes, driving growth and supporting jobs.
Figures from Building Societies Association show that there has been a marked uplift in the number of people who say that now is a good time to buy a property – 37% in September compared to 25% in June, whilst figures from Checkatrade show that:
- more than one in ten (11%) of Brits are hoping to have bought a new home by the end of March 2021
- 33% of those hoping to move plan to spend the ‘extra’ cash on home improvements and renovations.
Mike Fairman, CEO at Checkatrade, said:
Private housing output grew by about 30% in July compared to June, the single largest contributor to the monthly growth in construction output that month.