Housing transactions almost doubled over the last year, sparked by the stamp duty holiday and extra cash burning a hole in lockdown consumer pockets, according to the Equity Release Supermarket.
The volume of house sales jumped by 196% in the UK, in the first half of this year compared to 12 months ago, while second home purchases spiked by 20% over the same period.
The housing market was kick-started last July, when chancellor Rishi Sunak launched the stamp duty holiday, which waived tax on properties valued up to £500,000.
This came after house sales almost ground to a halt following the first March lockdown sparked by the pandemic.
Earlier this month, the nil-rate threshold will be reduced from £500,000 to £250,000 until the end of September.
From 1 October, the threshold will return to £125,000 – or £300,000 for first-time buyers purchasing a property worth up to £500,000.
However, the group found consumers who remained in work over the pandemic used the spare cash they amassed as hospitality and holiday markets seized up.
It found 75% of parents it surveyed continued to provide financial support for their adult children even after they had left the family home, with 22% helping them to get on the property ladder.
It added that gifting to children was up 38% year-on-year, home improvements jumped by 39% and mobile home or caravan purchases rose sharply by 39%, compared to a year ago.
The firm found that holiday spending was down by 43% over the period, while spending on new cars slumped by 34%.
However, cash spent building up emergency funds fell by 44% on a year ago, and consumer debt repayments shrank by 27%.
Equity Release Supermarket founder and chief executive Mark Gregory says: “Of course, many people took advantage of the stamp duty holiday which ended last month so there’s no doubting that this was one of the key drivers providing such a boost in property purchases.
“We also found that parents continued to support their children affected by the pandemic, as well as those trying to move up the property ladder or indeed simply get on it with the purchase of their first home.”
