Record deal surge ‘more of a blip than a signal of any real shift in market activity’ – LonRes

19 July 2021

Prime Resi

LonRes has just reported its busiest ever month after prime London buyers splashed the cash in the lead-up to the stamp duty deadline.

Transactions & under offer

Transaction figures reached brand new heights in June, said the data firm, with sales 140% up on the five-year average (2015-2019) and eclipsing the previous record set in March 2016 by a full 20%.

Q2 2021 also ended up as the busiest quarter on record, seeing 10% more sales than the previous peak in Q2 2014.

Predictably, the sub-£1m range saw the biggest leap in transactions (June’s total was up 177% on the five-year average; Q2’s was 78% higher), but it’s interesting to see the £5m-plus bracket also posting a rise of 45%.

Given how small a dent the SDLT saving would make on the typical bill at this level, this proves, says LonRes, that “the search for space, both internally and externally as well as demand from buyers looking for long-term family homes remains a key driver of the prime London housing market”.

Meanwhile, under-offer volumes dropped off as the deadline approached, and June’s total ended up on a par with 2019 and 2020 and around 15% lower than 2017/2018 levels. “This would suggest” added the report, “that while activity has undoubtedly been distorted by the rush to complete before the 30 June, we could well see levels of activity over the summer continue at volumes seen in the last couple of years.”

Read the full article (£)