The UK’s stamp duty holiday has only had a partial effect in distorting the property market and will unlikely leave a lasting impact.

This is according to research from estate agent Knight Frank.

There was a 30% rise year-on-year in the number of properties under offer in England and Wales in March, according to Head of UK residential research at Knight Frank, Tom Bill.

A breakdown of figures by price revealed the stamp duty holiday had not boosted activity “to a greater extent” in lower value markets.

Under the £500,000 threshold, “in which the stamp duty holiday creates the largest saving”, there was a 26% rise in such activity.

However, in regard to the £500,000 to £1 million price bracket, there was a 57% increase in the number of properties under offer.

Moreover, there was a 40% rise in the £1 million to £1.5 million range, and a 10% increase in properties over £1.5 million, says Property Reporter.

Bill went on to say: “With the holiday in place for nine months, buyers and sellers have increasingly factored in the need for price flexibility. All of which suggests the brakes will be dabbed rather than slammed on when the stamp duty holiday eventually ends.

“The stamp duty holiday has been an important motivating factor for buyers but the figures show that it hasn’t boosted activity to a greater extent in lower value markets. The maximum saving is £15,000 and although the tax-free threshold is £500,000, it is reasonable to assume it will be an important consideration for buyers up to £1 million.”
In other findings from Knight Frank, there were more residential super-prime sales above US$10 million in London during the Covid pandemic last year than in any other global market.
Knight Frank stated that “US$3.7 billion transacted in the city at this level, outpacing usual rivals of New York and Hong Kong”.