Average volume of properties on the market falls nearly 22 per cent since November peak

David Alexander

The firm has analysed data which reveals that the average number of properties advertised has fallen by 21.9 per cent across the largest 20 cities in the UK from the greatest decrease of 35 per cent in Bristol and Glasgow to the lowest in Manchester at just nine per cent.

The number of properties advertised peaked in November last year as the stimulating impact of the extension of the stamp duty land tax (SDLT) was felt throughout the market. Many people were keen to move and used the reduced tax burden as the ideal period in which to buy and sell property.

However, with the deadline for the stamp duty holiday due to end on 31 March these figures show that advertised property began to fall as people realised that they would be unlikely to get their sale through if it were begun too late to meet the deadline.

David Alexander, joint chief executive officer of apropos, said: “We can see from these figures that the market really boomed following the reduction in stamp duty fuelled by peoples’ desire to get the best home they could to match their changing needs in the post-pandemic world. The sharp fall since November highlights the projected cliff edge caused by the March 31 deadline as sellers clearly felt demand was being driven by the stamp duty relief.

“Whether we see a slight uptick is uncertain although the additional six months of stamp duty holiday announced by the Chancellor in his Budget (albeit the latter three months at 50 per cent the rate of the first three months) will probably add a boost to the market. It is likely that volumes may, if not rise suddenly, stabilise at their current levels as sellers and buyers realise, they will now achieve the existing and extended deadline.”

He added: “There is little doubt that the stamp duty holiday produced the required stimulus for the property market at what would otherwise have been a difficult time. However, it has also highlighted that there is a need to review all property tax to produce a more coherent, stable, and fair means of taxing the market. That a tax reduction like this could have such a huge impact over such a short time needs to be examined to see if some of the elements which encourage demand, whilst maintaining Government income, can be replicated in a revised version of stamp duty in the future.”