This is according to HMRC’s monthly transactions commentary which revealed the number of homes sold reached 121,640 in the first month of 2021.
HMRC attributed the year-on-year rise to continued pent-up demand in the property market along with the impact of the stamp duty holiday.
It said the dip in the monthly transactions was a ‘seasonal’ trend which was commonly experienced in January following ‘relatively high levels’ during Q3.
Indeed, Iain McKenzie, CEO of The Guild of Property Professionals, explained the start of the year was typically a time when property sales took a breather, with most buyers aiming to complete the purchase and move in before the Christmas period.
He added: “It comes as no surprise that residential transactions were down slightly in January, but what is unusual is the fact that transactions are up by almost a quarter compared to the same month last year.
“Property sales have had a rollercoaster year, but the peaks and troughs almost cancel each other out. What we’re left with is another strong year of sales and a reminder of the enduring strength of the UK housing market.”
The data has even more emphasis to the argument for extending the stamp duty holiday beyond 31 March.
McKenzie added: “The chancellor has a big decision to make about the end of the stamp duty holiday next month, and a short extension or gentle phasing out of the scheme could help avoid the cliff edge in transactions that the market fears.”
Meanwhile, Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “This year has started on a high for property transactions driven by buyers who flocked to the market to benefit from the stamp duty ‘holiday’, though there are early signs that sales volumes may have peaked at the end of 2020.
“Even if Chancellor Rishi Sunak decides to extend the stamp duty discount or introduce a tapering period to cover those held up by backlogs in the process and are unable to complete their purchase before the deadline, the reintroduction of the charges at some point this year will affect sales volumes initially.
“However, there still remains a large pool of potential buyers who are reassessing their living conditions for life after lockdown, and looking for a larger property or more outdoor space.”
“This year has started on a high for property transactions driven by buyers who flocked to the market to benefit from the stamp duty ‘holiday’, though there are early signs that sales volumes may have peaked at the end of 2020.”
