Cut Stamp Duty plea as house sales slump to record low

NEAR-TERM EXPECTATIONS for house sales have sunk to their lowest levels on record, according to surveyors.

The Royal Institution of Chartered Surveyors (Rics) said the positive signs that had been seen in the housing market at the start of the year went into reverse in March.

An overall net balance of 92 per cent of property professionals now expect to see a fall in sales rather than an increase over the next three months.

It is the worst reading since Rics first started asking the question in 1998.

Rics also said that while the immediate priority is people’s health and defeating coronavirus, Government intervention may be needed further down the line to help get a post-pandemic housing market back on its feet.

A stamp duty holiday may help with this, it suggested.

A net balance of 72 per cent of surveyors saw the number of new homes coming on the market fall rather than increase in March.

As a result of this, the average amount of properties on estate agents’ books are at a record low of 40 properties per branch.

Looking forward to the next 12 months, professionals were slightly less negative, although 42 per cent still expected sales to fall further rather than increase.

The market has ground to a near-halt due to the impact of the coronavirus outbreak, with buyers who had been on the brink of moving having been told to put off their plans until a later date. Lenders are giving mortgage offer extensions to enable this.

Simon Rubinsohn, Rics chief economist, said: “The results of the latest Rics survey capture the period during which the economy moved into lockdown so show a somewhat mixed picture.

“But critically, the key forwardlooking indicators clearly reflect the emergency measures in place.”