Property transactions

The number of people moving home more than doubled (132%) to 265,070 in the first half of 2021, compared to the same period last year, according to the latest Halifax Homemover Review.

There were an additional 151,040 transactions in the first six months of this year, in contrast to the same period in 2020, where 114,030 home moves took place.

In the 12 months to June 2021, 461,010 home moves took place, up by more than 50% on the previous 12 months. The total number of moves in the last year is almost 100,000 more than at any point in the last 10 years.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

This leap in property transactions comes after several years of flat or falling numbers and brought the annual total to the highest it’s been since 2007, when it hit 716,650.

First-time buyers also returned to the market in force during the first half of the year, with 210,900 transactions, an increase of 74% on the same six months last year. Those getting their first foot on the housing ladder accounted for nearly half (44%) of all sales in the period.

Across the UK there was a year-on-year doubling of the number of homemovers (132%). Every region in England and Wales saw transaction numbers double in the first half of 2021 compared to the same period last year, while Scotland saw an 86% increase.

The regions with the largest increases in home movers were the South East (169%) and London (165%). Northern Ireland has seen the greatest long-term increase, with a 182% rise over the last 10 years. In comparison, London has experienced a 64% rise over the same period.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

A ‘race for space’, as workers adjust to a future where working from home more frequently, is reflected by changes in the mix of property type bought. Detached homes were the most popular for movers (30%), slightly ahead of semi-detached properties (28%).

The largest rise in detached home purchases over the last 10 years was in the West Midlands (14%), while its neighbour, the East Midlands, experienced a fall of almost 9% in semi-detached sales.

The average price paid by homemovers rose 11% in the 12 months to September 2021, to £387,485. Wales (£276,849), East Midlands (£320,715) and Yorkshire and the Humber (£284,268) all saw prices rise by 16% over the year, whereas Greater London (£699,864) saw prices rise by just 5%, the lowest of any region.

Homemovers put down an average deposit of £134,227, equivalent to 35% of the purchase price. Average deposits were worth at least 30% of the property in all UK regions. Highest deposit levels are in the South West (38%), with the North having the lowest at 30%.

Andrew Asaam, mortgages director at Halifax, said: “The rate and scale of the growth of the homemover market is quite remarkable. After several years of flat transaction numbers then a marked fall at the start of the pandemic, we’re now at a level not seen since 2007.

“There are many factors that have driven this activity, perhaps the biggest of which is the ‘race for space’ amongst those planning to work from home in the long term. The timing of some these moves will also have been influenced by people wanting to benefit from the stamp duty holiday.

“It is important to recognize the boom in sales was not limited to movers. There were more first-time buyers in the first six months of this this year, than in the first half of any of the last 10 years.

“Those getting on to the housing ladder accounted for almost half of all mortgage-backed purchases, which is in line with the long-term average.”

By Jake Carter

Source: Mortgage Introducer

Discover our Commercial Mortgage Broker services.

The number of property transactions registered in England and Wales was up 20% over the last quarter, rising to 290,248 in Q2 2021, up from 241,916 in Q1 2021, according to the latest Conveyancing Market Tracker from Search Acumen.

This is the highest number of quarterly transactions since records began ten years ago in Q2 2011.

Conveyancing volumes in Q2 2021 were 252% higher than the year before, when the COVID-19 pandemic first hit the nation and the property market temporarily shut down.

With just 82,385 transactions having completed during Q2 2020, this quarterly total was beaten during every single month of Q2 2021 as the stamp duty incentive prompted unprecedented buyer demand.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Search Acumen’s analysis shows June 2021 was the busiest month of the quarter, with 113,184 transactions taking place. This was the highest monthly total since April 2016, when stamp duty changes hiked tax bills for landlords and second home buyers.

The tracker shows it was ‘all hands on deck’ in response to record demand in the market. Active firms climbed 2% over the last quarter to 4,048 in Q2 2021, up from 3,962 in the previous quarter.

The number of firms registering transactions crossed the 4,000 point for the first time since the pandemic first hit, reaching levels last seen in Q3 2019 when 4,024 firms were active.

Comparisons to Q2 2020 further illustrate the pace of recovery, when there were just 2,411 firms active during the first lockdown. Q2 2021 figures represent a 68% increase from the heights of the pandemic when many property transactions were halted in their tracks.

In contrast, the average firm saw record levels of business in Q2 2021 with their average number of property transactions reaching a new high. This measure increased by 17% over the last quarter to 72 – underlining the extreme pressure that conveyancers have had to work under amid unprecedented market activity.

Average transaction volumes saw a considerable increase from when the pandemic took hold in Q2 2020, when average caseloads dropped to just 34. Looking back over the last three years before the pandemic struck, the average firm had been accustomed to completing no more than 65 transactions per quarter until this new pinnacle of activity emerged.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Andy Sommerville, director of Search Acumen, said: “This data highlights the huge pressures placed on the property sector over recent months. The record-breaking number of transactions completed, particularly in June, are a testament to the hard work of the entire industry from conveyancers and lawyers to estate agents and surveyors, who have gone above and beyond to help clients beat the stamp duty cut off.

“It is important to remember the industry has been put under intense pressure since the holiday was first introduced last summer. The large caseloads that have been processed have not only relied on the hard work of individuals but made it vital that firms have efficient workflows in place to help manage rising demand.

“Digital due diligence has been essential to handle the pressure, and the months ahead are an opportunity for the industry to build on new ways of working that have paid dividends to date. While commitment may be required, the long-term benefits make any learning curve worth the effort. Lawyers and clients alike can both benefit from time savings, along with the enhanced advice lawyers can provide when they are equipped with accessible and accurate property data. A more efficient and seamless transaction process hinges on more widespread adoption of technology.”

Source: Mortgage Introducer

Discover our Mortgage Broker services.