"Traditionally, we would see transactions plateau in December as homebuyers wait until the new year to move, however, 2020 was anything but traditional"
On a non-seasonally adjusted basis, the number of transactions rises to 137,200, 34.2% higher than December 2019 and 14.0% higher than November 2020.
David Whittaker, CEO of Keystone Property Finance, commented: “Demand for property continued to surge up until the end of the year, fuelled by the stamp duty holiday as the industry battles to get borrowers over the line before the March 31st deadline. Traditionally, we would see transactions plateau in December as homebuyers wait until the new year to move, however, 2020 was anything but traditional and bucked the trend with volumes standing at 13.1% higher than November, a 31.5% increase year on year."
Simon Knight, managing director of specialist lender Lendco, added: "It is not surprising that December, usually a relatively quiet period for the housing market, was so busy with a surge in transactions, up 31.5 per cent on December 2019. Buyers, motivated by the dual enticements of the stamp duty holiday and desire for more space, were focused on moving rather than the usual festivities which were understandably muted as a consequence of the pandemic.
"So far this month, we have seen the strong number of applications continue as investors seek to take advantage of the significant stamp duty saving. As long as buyers choose the right lender, engage a good lawyer, and avoid a long protracted chain, it should be possible to meet the deadline. Choose a property in a long protracted chain, take pot luck with the lender and use a bucket shop conveyancer and you have no chance of success.
"The end of the stamp duty holiday will likely create a cliff edge, and a number of disappointed buyers who have missed out. While the Chancellor may not be keen to extend the holiday indefinitely, granting an extension to those who are in the process of transacting, but did not manage to complete in time, would be a welcome gesture."
