According to the latest data from HMRC there were 147,050 property transactions last month which was 23% higher than in January 2021. This is the highest number of transactions since March 2016 – just prior to the introduction of the stamp duty surcharge on second homes.

This year’s vast leap in sales demonstrates the impact the stamp duty holiday has had on the property market – in particular the effect of original March 31 deadline.

Indeed, Mike Scott, chief analyst at estate agency Yopa, said: “Sales were soaring as we approached the deadline for avoiding stamp duty, which has since been extended to the end of June (except in Scotland).”

He added:  “This confirms that the stamp duty holiday did indeed have its intended effect of kick-starting the housing market after the end of the first lockdown, and the sales that were agreed over the summer and autumn are now coming through in the figures for completions.

“It remains to be seen what will happen to market activity after the new deadlines at the end of June and September. At Yopa, we believe that there is still a considerable amount of pent-up demand for a home move.”

UK residential property transactions by month – February 2020 to February 2021 (source: HMRC)

The figures are published exactly a year to the day the Prime Minister announced the first national lockdown and the property market closed.

Jonathan Sealey, CEO at specialist lender Hope Capital, said: “On the day that we mark one year since the first lockdown was introduced in the UK, it is most welcome news this morning that not only were residential property transactions up in February by almost 50% more than 12 months ago, but it’s actually the highest February level for ten years.

“After a year of living with coronavirus restrictions and an unprecedented economic downturn, today’s figures highlight a property market that is in rude health.”

Meanwhile, Richard Pike, Phoebus Software sales and marketing director, thinks, going forward, the number of transactions is likely to continue rising.

“The landscape changed again with the Budget and the market is likely to continue on its upward trajectory,” he said.

“With the mortgage guarantee scheme, higher LTV products, and lower rates, there is little to hold it back.