The latest market analysis from estate agency Chestertons reveals a substantial spike in the number of properties that changed hands ahead of the Autumn Budget and immediately after it was announced, with the agency seeing 71% more property sales finalised in October than in September.
Matt Thompson, head of sales at Chestertons, says: “In the run-up to the Budget, house hunters were definitely concerned about potential changes to Stamp Duty and were therefore motivated to finalise their purchase ahead of the announcement. Many investors and buyers of second homes then had a mad scramble to get their purchase across the line before the end of the 30th, when the Chancellor announced that Stamp Duty rates would increase from 3% to 5%.”
The new stamp duty rates mean that those purchasing a property that is not a primary residence will now pay between 5% and 17% in tax when purchasing a property.
Thompson adds: “Despite the spike in buyer activity, homeowners looking to sell took more of a ‘wait-and-see’ approach to the Budget, which caused a 24% drop in the number of properties being put up for sale in October. This widened the gap between supply and demand, giving sellers that remained in the market the upper hand during price negotiations.”
Chestertons’ data confirms a 17% decrease in the number of sellers willing to agree to a price reduction and predicts this sentiment to carry on over the coming months as the number of active buyers in the market remains high.
“We predict buyer activity to pick up further amid the Bank of England’s decision to cut interest rates from 5% to 4.75% this month. This has given more house hunters the confidence and financial capability to proceed with their search, which will result in the property market seeing a busier than usual winter season this year”, Thompson concludes.
