We’re now over a month on from the first stage of the tapering of the Stamp Duty holiday in England and Northern Ireland and the end of the Land Transaction Tax relief in Wales (Scotland’s holiday ended earlier this year). So let’s take a look at what happened to the market in July 2021.
Firstly, if we compare July with the previous month, June 2021. In reality, not a lot changed between June and July. Demand (buyers/sales) fell by 2% and Supply (sellers/new instructions) has fallen by 4%.
So then if we compare it to July 2019 we see that the demand is still well up in 2021. Sales agreed was 16% up on July 2019. However, the supply is 11% lower than in July 2019. The below chart shows the changes in supply and demand by region through the UK.
Supply volumes have fallen in all but 3 UK regions – Scotland, Northern Ireland and Inner London. However, demand has risen in all UK regions without exception. In a normal market, we would expect to see levels of demand at around 75% of the supply volumes. However, in July 2021, this was 95%. Demand is still outstripping supply.