Yahoo Finance Housing demand hits highest level on record for October
The number of prospective buyers in the UK reached its highest level ever for the month of October, new figures have shown.
The average number of buyers registered per estate agent branch reached 451 during the month, a fall from 525 in September, according to National Association of Estate Agents (NAEA) Propertymark’s October housing report.
However, this was the highest number on record for the month of October, and an increase of almost a third (32%) from October 2019 when there were just 341 house hunters on average per branch.
An average of 12 sales were agreed per branch in October this year, the highest recorded for the month since 2006, despite a small decrease from 14 the month prior.
Year-on-year, the number of sales per branch increased by 50%, rising from eight in October 2018 and October 2019, the data revealed.
The number of sales to first-time buyers climbed from 19% to 21% in September. Year on year this represented a fall of six percentage points from October 2019.
Meanwhile, the number of properties available per member branch stood at 39 in October, falling marginally from 41 in September.
In October, 7% of properties sold for more than the original asking price, a marginal fall from September’s 8%. The majority (58%) of properties sold for less than the original asking price in October.
Watch: What is shared ownership?
READ MORE: UK house prices expected to be higher in a year despite crisis
Mark Hayward, chief executive of NAEA Propertymark, said: “Typically, we see the property market slow down as we approach the festive period and people put their sale on hold until the New Year.
“However, the pressure of completing sales ahead of the Stamp Duty holiday ending means that we have seen the number of potential buyers and the number of sales completed remain unusually high for this time of year.”
He added: “This boom has been hugely beneficial for the housing market; however, we are increasingly concerned about the impact of the stamp duty cliff edge on 31st March 2021. This cliff edge has already increased pressure on service providers within the industry, causing delays for buyers and sellers, and could cause thousands of sales to fall through at the final hurdle as buyers realise their sale will not be completed ahead of the deadline.”
Until 31 March next year, the UK government has confirmed that house buyers will not pay any stamp duty on the purchase of their main property costing up to £500,000 ($666,818). If the property costs more than £500,000, stamp duty is due based on revised rate bands.
It comes as earlier this month UK house prices topped £250,000 for the first time in history.
Halifax’s house price index, one of the longest-running and most closely followed gauges of the UK property market, showed that prices were 7.5% higher in October than a year earlier.
It marked the highest rate of annual growth since mid-2016.
Watch: Why are house prices rising during a recession?
