Stamp duty holiday sparks 200% rise in house viewings

House viewings trebled in Q3 compared to the previous quarter, as buyers took advantage of the stamp duty holiday announced by the Government in early July, according to new research from Andrews Property Group.

Related topics:  Finance News
Rozi Jones
21st October 2020
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"We saw an immediate uplift in viewings and instructions following the announcement, and healthy levels have been maintained throughout the third quarter"

Its figures show that viewings were up 205% in Q3 vs Q2, with more than 17,000 viewings taking place during the quarter compared to less than 6,000 across Q2.

Instructions were also up substantially over the same period, more than doubling (123%) versus Q2.

Virtual viewings still made up a third of all viewings carried out in Q3, and this is likely to increase in the coming months if regional lockdowns are imposed across the south of the country.

Andrews figures show that buyer activity was consistent across Q3, with viewings above 5,500 in July, August and September.

David Westgate, chief executive of Andrews Property Group, commented: “Buyer and seller activity has remained buoyant since early July when the Chancellor announced a freeze on stamp duty. We saw an immediate uplift in viewings and instructions following the announcement, and healthy levels have been maintained throughout the third quarter, fueled by the desire to get transactions done while market conditions remain favourable.

“Where the market goes next will very much depend on how the Government navigates the next couple of months. Regional lockdowns are putting pressure on local economies and concerns over the end of furlough are likely to weigh on buyers’ and sellers’ minds.

“There’s still enough pent-up buyer demand in the system to keep the property market ticking along, and the stamp duty holiday is a once-in-a-generation bonus that will provide some protection against the choppy waters that lie ahead.

“Lenders pulling higher LTV rate mortgages over the past few weeks, is also having a natural cooling effect on the market which is not necessarily a bad thing. We want to avoid property prices falling off a cliff edge next March when the stamp duty holiday comes to an end.

“The Government should also consider extending the holiday for a further period if the economic climate takes a rapid turn for the worst in the New Year, which it could well do if Covid levels aren’t suppressed and we fail to agree a trade deal with the EU.

“There’s a great deal of uncertainty ahead of us, but house prices have proven to be extremely resilient in the past when buffeted by strong economic headwinds, which suggests the market is well placed to cope with any eventualities.

“As an agency, we are also well prepared to revert to virtual viewings if the country goes into full lockdown again, to ensure the safety of our customers and staff, while keeping the market moving.”

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