"While demand is there, we expect instructions and viewings to stabilise as we approach the end of September when the stamp duty holiday ends."
Across Andrews network of 50 offices in the South of England, new instructions fell 7.1% in July vs June. This follows an 11% drop in instructions in June (vs May) just before the holiday deadline.
Property viewings in July (3,425) were at a similar level to June (3,430) but more than 18% down on May figures (4,197), when buyers were rushing to complete before the full tax break ended.
Since 1st July, the stamp duty holiday has been tapered, with the tax threshold reduced to £250,000. From 1st October the threshold will revert to £125,000.
Buyer and seller activity was more subdued in July. Market conditions returned to some semblance of normality after the buyer frenzy seen for several months following the Government’s announcement in March that it was extending the full stamp duty holiday.
David Westgate, group chief executive, Andrews Property Group, commented: “Although market activity has cooled in July, this isn’t solely down to the tapered stamp duty holiday. The summer months are typically quieter for property transactions as people head off on their holidays, and although many are staying at home this year, they are still taking time out to have some much needed downtime.
“Now the tax break is being phased out, we are likely to see less frenzied market activity for the rest of the year. However, demand remains strong and the fact that buyers can still enjoy a tax break up to a threshold of £250,000 should keep many interested in viewing and pushing through sales.
“While demand is there, we expect instructions and viewings to stabilise as we approach the end of September when the stamp duty holiday ends. If anything, we’re seen renewed vigour from buyers and sellers in August.
“The end of the furlough scheme on 30th September may be a bump in the road but perhaps not as severe as expected, as the scheme already started to taper in July and the economy is holding up.
“For now, buyers and sellers have a window of opportunity to push through sales while economic conditions remain reasonably stable.”
