- rise in sales supports nearly three quarters of a million
jobs in the sector – with new homeowners also spending extra cash
on decorating, furniture and appliances
- construction sector reports 30% boost in output in July
House sales rose 15.6% in August following the introduction of
the stamp duty holiday – helping to protect nearly three quarters
of a million jobs in the housing sector and wider supply chain,
new figures revealed today.
After a 14.5% rise in July, residential property transactions in
August rose a further 15.6% as more people decided to buy a new
home or move house. The increase in transactions came after the
Chancellor announced a stamp duty holiday at the start of July
that will last until March next year.
The move has helped to protect nearly 750,000 jobs, benefitting
businesses across the housing supply chain and beyond, with the
Bank of England estimating that households who move home are much
more likely to purchase a range of durable goods, such as
furniture, carpets or major appliances.
It is expected that among others housebuilders, estate agents,
tradespeople, DIY stores, removal and cleaning firms could all
benefit from the increased activity.
Chancellor said:
Every home sold means more jobs protected – helping us to
deliver on our Plan for Jobs.
But this isn’t just about the housing market. Owners doing up
their homes to sell and buyers reinvesting stamp duty savings
to make their new house feel like a home are also firing up
local businesses, supporting, creating and protecting jobs
across the country.
As part of its Plan for Jobs, the government introduced a
temporary stamp duty holiday for residential properties worth up
to £500,000 effective from 8 July 2020 until 31 March 2021.
The holiday means nine out of ten people getting on or moving up
the property ladder will pay no SDLT at all. This measure
delivers an average saving of £4,500 in SDLT.
The government wants people to feel confident to move, to buy, to
sell, to renovate, and to improve their homes, driving growth and
supporting jobs.
Figures from Building Societies Association show that there has
been a marked uplift in the number of people who say that now is
a good time to buy a property - 37% in September compared to 25%
in June, whilst figures from Checkatrade show that:
- more than one in ten (11%) of Brits are hoping to have bought
a new home by the end of March 2021
- 33% of those hoping to move plan to spend the ‘extra’ cash on
home improvements and renovations.
Mike Fairman, CEO at Checkatrade, said:
Since the Government’s stamp duty changes came into effect
earlier this year, we’ve seen record numbers of home
improvement enquiries to the site suggesting that consumers are
planning to reinvest their stamp duty savings straight back
into their homes.
This increase has not only benefitted Checkatrade as a
business, but also the livelihoods of the traders we represent.
Private housing output grew by about 30% in July compared to
June, the single largest contributor to the monthly growth in
construction output that month.
Notes
-
As part of its Plan for Jobs, the
government has temporarily increased the Nil Rate Band of
Residential SDLT, in England and Northern Ireland, from
£125,000 to £500,000. This applies from 8 July 2020 until 31
March 2021 and cuts the tax due for everyone who would have
paid SDLT. Nearly nine out of ten people getting on or moving
up the property ladder will pay no SDLT at all.
-
87% of Primary Residence transactions in England and NI will
no longer pay any SDLT, 93% outside of London and SE.
-
The Home Builders
Federation estimate that 240,000 people are directly
employed by housebuilders and their contractors and the
sector supports a further 300,000-500,000 people indirectly
employed.
Please see below for figures from:
