2022 property activity set to be 9% higher than pre-pandemic

The Office for Budget Responsibility’s (OBR’s) economic and fiscal outlook, which was published following last week’s Budget, predicts that property transactions will be 1.29 million in 2022, higher than the 1.18 million for 2019.

The OBR also forecasts £15.8bn will be paid in property taxes in 2022/23, up from £12.5bn in 2019/20.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, commented: “This is a triple-whammy for the Chancellor. By not making any changes to stamp duty rates or thresholds in his Budget, he’s now looking at more people buying homes next year than before the pandemic, at prices that have soared since 2019, and with stamp duty still set at 2014 levels. The returns to the Treasury, much of it paid for by homebuyers, will be significant.

“If the OBR forecast is correct, it looks like the market is not moving from boom to bust, but carrying on a steady growth trajectory over coming years. And this would be great news for brokers who will be able to capitalise on the extra business. While the property market might not return to the same frenzied state it was at the height of the stamp duty holiday, there should still be plenty of opportunities to support clients with finding the right mortgage for their needs.”