Real estate sees ‘big sales logjam in decade’

Published: 15/06/2021 By Musgrove & Co

Real Estate

Real estate deals are negotiated at a faster rate than completed. This contributes to a major transaction pipeline over a decade, according to real estate portal Rightmove.

Some 704,000 households on its website are currently listed as sold on a contract basis. This means that parties have agreed the sale, but they have not exchanged contracts.

This is the highest rate Rightmove has seen in a decade. It is an additional 308,500, or a 78% increase, compared to the same time in 2019.
Earlier this year, the sales pipeline across Britain stood at 613,000. Rightmove was expecting a second 'quiet' quarter, but that failed to materialize.

According to Rightmove, the frantic market over the past few months has led to homes being marked as agreed sales sooner than they would have been.

The site has also recorded their highest increase of the buildings entering or leaving the market.

Of the 704,000 sales currently underway, another 220,000 were marked under supply between July last year and the end of February this year in England. To make matters worse, they are yet to have finalised these figures..

Under current laws, no stamp duty will be paid for the first £500,000 purchase by June 30. This saves buyers up to £15,000 compared to standard taxes.

After that, there will be no stamp duty charge for the first £250,000 purchase until the end of September. This will save consumers up to £5,000.

Limited impact

However, many buyers appear to be unaffected by the stamp deadline. This is according to a survey of nearly 8,000 homebuyers who want to buy a home this September.

The majority of them said they would continue as planned, irrespective of whether they can make use of holiday stamp duty.

25%, or one in four, said they would try to negotiate with the seller, and 13% said they would plan to buy a cheaper home.

Only 4% of people say they will abandon their home purchase plans altogether if they miss the June or September deadline.

The survey also shows that only 29% of home buyers said they expect to finish selling on time to take advantage of the stamp duty holiday.

According to the Halifax price index, the house prices reached another record high in May. The average home added more than £3,000 in value last month alone.

The country is slowly beginning to open and and many families are unable to go on foreign holidays. Therefore, the manager of estate agent Fina & Country predicts that housing growth will continue throughout the summer.

The epidemic has contributed to the ‘transformation’ of young UK workers. This is because many have decided to move home for better health, according to a new study.

By comparison, only 9 % of those 55 years of age or older thought to do the same.

London workers were the most eager to make a change. 38 % say that they moved home for better health.

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