Newly released market analysis of the property transaction pipeline, comparing the year to end Q1 2021 vs 2019, found that there was a subdued start to 2021 with new property listings down by 18% in January and 15% in February compared to 2019 data.
However, March 2021 saw new listings rise to 14% higher than the 2019 baseline, with sellers buoyed by the lockdown exit plan, a further extension of the Stamp Duty Land Tax holiday and the introduction of the new Government-backed mortgage guarantee scheme.
Sold Subject to Contract
For properties converting to Sold Subject to Contract, the data shows market activity in January and February 2021 was comparable to both 2020 and 2019, which given the lockdown conditions, demonstrates the continued strength of the market. In March 2021, monthly volumes surged, exceeding 2019 data by 18%, most likely driven by the Government’s stimulus activities.
Legal Conveyancing
In terms of the legal processing of residential transactions, property search order volumes were reporting a significant increase when comparing to 2019 data, with data showing order volumes reaching up to 40% higher than in prior years.
Completions
The first quarter of 2021 saw considerable increases in transaction completions, as property lawyers and conveyancers worked hard to complete ahead of the first Stamp Duty deadline, originally set for the end of March. As a result, completion volumes were up 20% (January), 38% (February) and 66% (March) when compared against 2019 comparable months.
Simon Brown, CEO of Landmark Information Group, said: “With the volume of property completions far exceeding those recorded in 2019, our latest Property Trends Report shows that the property market in England and Wales started the year in a buoyant state, with all eyes focused on the original Stamp Duty holiday deadline.
“In contrast, while property listings were initially subdued for the first two months of the year, an acceleration of sellers listing their properties that emerged in March will help balance the overall supply and demand issue, as available stock rises.
“With the government supporting the market through the extended Stamp Duty break to the end of June alongside the mortgage guarantee scheme, we will be closely monitoring the pipeline over coming months to see if the market now finds a more stabilised pattern.”
