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Residential transactions reached record high in Q1 2021

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Residential property transactions hit a record high of 456,000 in Q1 2021, with 191,000 in March alone, thanks largely to the anticipated end of the stamp duty holiday, according to latest residential research published by Colliers. 


Transactions rose from 347,000 in Q4 2020, and are expected to continue at a high level while the stamp duty holiday remains in place, and reduced rates continue until October, according to Residential Report Q2 2021. The average mortgage borrowed also reached a record high of £216,591 in Q1 2020, up from £204,621 in Q1 2020.

Andrew White, head of Residential at Colliers said: “Currently there are no signs of residential market activity slowing. The number of property transactions reached a record-high of 191,000 in March, more than twice the March 2020 figure and although mortgage approvals slowed, they remain well above the five-year monthly average.

“With the Government’s extension of the stamp duty holiday, as well as new 95% LTV mortgages, we expect momentum will be sustained in the short term. House price growth has surged to a high recently, and we expect growth to continue into next year.”

Other key findings from the report are:

  • The number of house building completions hit a record high of almost 47,000 in Q4 2020.

  • Housing starts rose to a two-year high of 42,000 in Q4, from 36,000 in Q3 2020.

  • 82,735 mortgages were approved, 30 per cent above the five-year monthly average of 67,100.

  • The average mortgage taken out stands at £216,591 in Q1 2021, up from £204,621 in Q1 2020 and the highest figure on record.

  • 94,364 BTR units are in the planning stage, an increase of 31% on the Q1 2020 level and the highest quarterly figure on record. The total BTR pipeline is 130,418, 20% higher than the corresponding 2020 figure.

Oliver Kolodseike, UK deputy chief economist at Colliers, added: “The UK’s economic recovery is well underway and fiscal and monetary policy is still favourable towards the residential market, although there is expected to be some slow down in growth later in the year, as the Government’s interventions come to an end.

“While there could also be a temporary drop in housing completions later in the year, as a result in a reduced number of housing starts during the first UK lockdown, construction output is increasing and successful planning applications are stable.”

Download the report


Related Experts

Andrew White

Head of UK Residential & International Properties Asia

Residential - Development

London - West End

Andrew heads up the UK Residential & International Properties (Asia) Department at Colliers and is a specialist advisor in residential and mixed use developments.  He has been involved in some of the largest and most complex sites within the U.K.

The Residential Department at Colliers comprises a market leading  team of  surveyors and advisers who focus on London, The South East and the Regions, advising  clients on their options for maximising value for their assets, including planning, development consultancy, Build To Rent, investment and disposal strategy and New Homes & Project marketing, both in the UK and Internationally.

Andrew has worked in the sector since 1994  having started his career with a large multinational real estate agency, then running his own land agency for 8 years before joining Colliers in 2013. He has advised government bodies such as the NHS, as well as family businesses, funds, charities, developers and companies on their strategy for disposal of their land holdings and property assets.

Clients include, Legal & General, the NHS, Royal London Asset Management, The Diocese of London, London Square, Telereal Trilium, Threadneedle, Aberdeen Standard, Greggs, Rexel and PSA Group as well as other large corporate landowners.

View expert

Oliver Kolodseike

Director of Economics and Research

Research and Forecasting

London - West End

Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

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Kim Inam

PR Manager

Marketing & Communications

London - West End

I'm a communications professional who has previously worked as a journalist for eight years covering a broad range of topics including politics, crime, health and housing in north London. In recent years I have worked in corporate communications for local authorities across London  and joined Colliers in October 2019, initially providing maternity leave cover.

I provide strategic public relations advice to various business lines within the UK organisation to secure recognition for their work in the property press as well as key target media, and work with our experts to produce thought leadership pieces which are of interest to our clients and colleagues within the commercial real estate sector. In addition, alongside colleagues in the PR and wider communications team, I provide media and social media training for our in-house experts to prepare them for media opportunities and raise their personal brand within the sector.

As well as supporting various teams within the UK business, I also I curate and edit regular content for the Colliers.com blog, which drives credible business leads to our experts.

 

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