The Official Property DOOM: sales plummet

[AtW]

"Property sales plummet after stamp duty cliff edge

Surging transactions stalled once buyers missed the maximum tax savings

Property sales plummeted in July after the stamp duty holiday was tapered and buyers' tax savings shrunk.

HM Revenue & Customs recorded 82,110 residential transactions last month, a drop of more than 61pc on the 213,120 sales in June. It came after a huge spike in sales as buyers rushed to push through deals in time to make the tax saving.

The figure was just 1.8pc higher than July 2020, when the housing market had recently reopened after the first lockdown.

HMRC attributed the huge month-on-month fall to the tapering of the stamp duty holiday at the end of June. Up until this point buyers could save a maximum of £15,000 in tax, but in July this dropped dramatically to £2,500.

The fall in sales was significantly steeper than that recorded in April this year, when transactions dropped by almost 36pc after a rush to complete ahead of the initial stamp duty deadline in March."

https://www.telegraph.co.uk/property...ty-cliff-edge/

[ladymuck]

Of course it was going to. There was never any need to prop up the housing market so now we have a false crash before it goes back to how things would have been if only no-one had meddled.

[Whorty]

Volume might be down,but isn't price still on the upward trend?

Story the other day was that the trend in property prices is up all over the world .. given only the UK had the tx eincentive, the general conclusion is that the stamp holiday had little to no effect and the prices would have increased anyway.

[AtW]

There was never any need to prop up the housing market

Yes, there was -

"Property donors provide one-quarter of funds given to Tory party

UK governing party has received nearly £18m from donors with property interests in the past two years"

https://www.ft.com/content/c5737fbb-...e-965785f1a37b

[DaveB]

Why do you think Rishi is so keen for people to get back to the office. All those tory donors losing money on their expensive property portfolios with no-one to fill them.

[AtW]

Why do you think Rishi is so keen for people to get back to the office.

To be fair there are wider economic implications of more people doing WFH - public transport might become even less viable, so larger taxpayer support will be needed, however this might be secondary consideration to corrupt Tory Scum