Residential transactions jumped exponentially in June 2021, compared to the same month last year when the property market was impacted by the coronavirus pandemic.

The latest statistics from HMRC show a 219.1% increase in residential transactions from June 2020 to June 2021, 74.1% higher than year-on-year figures to May this year.

However, when analysing the figures, HMRC advises caution due to the ‘substantial negative impacts’ of the pandemic on property transactions in June last year.

HMRC reports significant evidence of forestalling in the property market in June, whereby taxpayers completed property transactions early to take advantage of the stamp duty holiday, which ended for properties up to £500,000 on 30 June.

The provisional seasonally adjusted estimate of UK non-residential transactions in June 2021 is 10,850, 58.7% higher than June 2020 and 6.8% higher than May 2021.

Mortgage Engine managing director Cloe Atkinson says: “Today’s figures reflect how well the housing market has adapted to the unprecedented circumstances over the past year. Technology has played a significant role in this adaptation, but these figures are also a reflection of the Stamp Duty holiday, with thousands of buyers rushing to beat the deadline in June. There needs to be a balance in the market, with brokers and lenders working collectively towards a sustainable future.

“The stamp duty holiday has been an overwhelming driver in the housing market since its introduction in 2020. However, we need to keep an eye on the long term and how we are going to sustain a positive market as normal life resumes and activity begins to slow down. The potential affordability and vulnerability challenges for many buyers will also need to be addressed as the furlough scheme, along with other government schemes, come to an end later this year.”

Smartr365 chief executive Conor Murphy says: “The end of June brought closure to the first phase of the stamp duty holiday and one of the busiest periods ever witnessed by the property market. Today’s fantastic findings are testament to the success of the scheme in sparking further interest in an already busy market and positioning the industry as a key driver in the UK’s economic recovery.

“We have championed the stamp duty holiday as ‘the great equaliser’ since its introduction in July 2020 and will continue to do so long after its conclusion in two months’ time. The tax break has reduced the amount of upfront capital needed to get on the property ladder, made homeownership a more viable goal for thousands and provided a much-needed form of economic relief in a period where finances are increasingly strained.

“However, with brokers, conveyancers and lenders all juggling sky-high demand, it’s important that advisors manage client expectations and assess how mortgage tech can be used to streamline transactions before the holiday draws to an end in just 10 weeks’ time. Mortgage tech can act as an additional team member if used correctly. There’s no better time than today to see how features like one-click DIPs, task automation and digital ID verification can remove the legwork in your business, leaving you with more time to focus on what truly matters: providing clients with expert advice.”