The Party Appears to be Coming to an End

Posted by TwentyCi on 23rd September 2021 -

We’ve already seen homemovers peak in June with 213,000 property transactions – nearly 100% higher than historic norms. With this came free-flowing footfall into stores, especially after non-essential retail fully re-opened on 12th April, meaning that marketers didn’t need to invest in marketing as they had more incoming prospects than they could effectively deal with. This is all about to change as we enter the last quarter of the year, and it will become important again to target customers who are more likely to convert (and spend more) so that the best returns are achieved from your marketing spend.

Effects of the 2016 Stamp Duty Surcharge  

Prior to 2020, before national lockdowns and empty shelves, the last significant change to stamp duty was implemented on 1st April 2016. This was the additional surcharge to second-home owners, landlords of buy-to-let properties, and properties purchased under a company. Why are we talking about this again? Well, history has shown us that an event such as a change in stamp duty like that which was seen in 2016, will cause a rush of completions before the deadline, followed by a lull in the following months.   

The below chart shows the phenomenal spike in property transactions in March 2016 as home buyers, estate agents and conveyancers worked hard to complete transactions prior to the deadline. What followed in April 2016 is clearly shown as an underperforming month, where transactions for the month would have been expected to exceed 80,000.

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