Property sales in the United Kingdom have reached new highs as the boom continues.

Picture Courtesy: PA MEDIA

Official numbers show that property sales in the UK reached a new high in June, but economists believe this is the apex of the housing bubble.

According to figures from HM Revenue and Customs (HMRC), an estimated 213,120 sales were completed during the month, more than double the total in May.

Before some of the stamp tax exemptions were removed, there was a "frenzied rush" according to commentators.

However, because demand exceeds supply, they predict prices to continue to rise.

Sales records have been broken.

In June, sales in the United Kingdom reached their highest monthly total since comparable data was first gathered in April 2005.

The amount was 216.1 percent greater than a year ago in the same month, and 108.5 percent higher than May of this year.

A hurry to finish purchases before Covid-related stamp duty reductions were rendered less generous in England and Northern Ireland at the end of June was one explanation for the large surge. In Wales, a comparable tax advantage was completely eliminated.

The concession granted to Scotland expired at the end of March.

"These figures clearly illustrate the frantic rush to the finish line for buyers to take advantage before the stamp duty holiday drew to a close," said London estate agent Jeremy Leaf.

"However, since then, activity has decreased, particularly in London, where the savings were greatest." Early indications suggest that sales will be substantially lower, but we've found that nearly all of our transactions have been completed with only a few renegotiations. This leads us to assume that prices will not differ significantly in the next months."

"There's been a huge imbalance between buyers and sellers during the spring and early summer, which has meant panic buying, bidding wars, and the return of gazumping," said Sarah Coles, personal finance expert at investment platform Hargreaves Lansdown.

This, she added, might lead to individuals overpaying for real estate.

"It's also easy to feel like you don't have a choice, so you end up overstretching your finances and pushing your budget." "You may come to regret the lifestyle compromises you've had to make months later," she warned.

Publish : 2021-07-22 11:21:00

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