There are 50% more home sales progressing through the system year-on-year, according to Zoopla’s House Price Index.
Zoopla’s analysis suggested that this was due to buyers rushing in order to qualify for the stamp duty holiday, which ends in March 2021.
The research found that there are currently 418,000 sales in the pipeline, yet to complete. In monetary terms, this equates to an estimated £112bn.
The changing residential mortgage market
Sales agreed reached an annual high in August 2020, hitting 62% year-on-year uplift.
On a regional basis, sales agreed in the South East saw the greatest annual rise, of 15%, followed by London and the East of England, at 12% and 11% respectively.
Transactions were found to be taking just over 100 days from sales agreed to completion.
As a result of increased demand, supply has risen. Zoopla noted that the number of homes for sale was up 18% year-on-year, and the average asking price is 10% higher.
Richard Donnell, research and insight director at Zoopla, said: “There is a sizable pipeline of business for the property, lending and conveyancing industry to convert into completed sales before Christmas and into Q1 2021.
“The stamp duty deadline will focus the minds of committed movers in the near term, which will support sales volumes and make for a strong first quarter of sales completions in 2021.
“Those who leave it to January to start their search for a home will be cutting it fine – just half of sales agreed in January will convert into a completed sale by the end of March so those looking to beat the stamp duty deadline will need to be well prepared.
“Finding an agent before Christmas and instructing a conveyancer to prepare all the sellers legal information will be essential to boosting the chances of saving up to £15,000.”