Sales and prices surge following stamp duty cut

Property sales are up by 20% and average asking prices have risen by £10,000 in the four weeks since a cut in stamp duty, according to Bank of England data. Average asking prices are £30,000 higher and thousands more sales are being agreed each week than before the lockdown from March 27 to May 13. The number of sales per week is 65% higher than last year with average asking prices 14% higher. However, analysts believe the rise is a bubble, and the true effects of the economic crash are yet to arrive. Pablo Shah, a senior economist at the CEBR, says: "The stamp duty cut is propping up the market this summer but it won't be sufficient to negate the effect of the end of the furlough scheme and mortgage payment deferrals later this year."

The Times (14/08/2020)