Stamp Duty holiday helps improve prime central London market

Property consultancy LonRes says June was a record-breaking month for property sales in the capital, with exchanges up 140 per cent on that month’s five-year average.

In addition, new instructions in the second quarter of the year were 36 per cent higher than in the same period of 2019, as well as being  and 13 per cent higher than the Q2 average from 2015 to 2019).

Marcus Dixon, head of research at LonRes, says: “Both June and second quarter transaction volumes exceeded levels seen at previous peaks in 2007 and 2014. Indeed, June 2021 was the busiest month on record at LonRes.

“But the rise in activity is unlikely to be down to stamp duty incentives alone. All price brackets saw significant increases in activity, with the market below £1m being the busiest. But it was busy at the top end of the market too.  

“There were 45 per cent more sales of properties priced at £5m or more where the £15,000 saving is less likely to be the make or break deciding factor for a buyer facing a stamp duty bill of £500k plus.”

However, there was much more mixed news on prices.

The so-called ‘prime fringe’ recorded a 4.2 per cent annual rise at the end of the second quarter of this year - while average prices in Prime Central London fell 1.4 per cent. 

But there was some sign of strengthening - the average discount achieved by purchasers fell to 7.1 per cent in this second quarter off this year, the lowest since early 2016.