Residential property sales across England and Wales fell by more than 18% in the year to March 2026, according to new figures.
The annual decline stood at 18.4%. It follows the end of the temporary Stamp Duty thresholds in April 2025.
That change increased the upfront tax bill for many buyers.
The figures add to concerns about transaction levels as affordability remains under pressure.
The latest data comes as the Bank of England kept Bank Rate unchanged at 3.75%.
Six members of the Monetary Policy Committee voted to hold rates. Three backed an increase to 4%.
Inflation rose to 3.1% in August and the Bank expects it to increase further.
Policymakers said risks to the inflation outlook have moved to the upside. They pointed largely to higher and more volatile energy prices.
Mortgage costs also remain elevated.
The Bank said quoted rates on two-year fixed mortgages had risen by around 0.95 percentage points since the latest Middle East conflict began.
For estate agents, higher transaction taxes and borrowing costs create another potential barrier to market activity.
Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries, said Stamp Duty was influencing decisions about moving home.
He said: “A near 20% drop in house sales shows just how significant Stamp Duty has become in people’s decisions about moving home.
“The fall comes after changes to Stamp Duty left many buyers facing thousands of pounds more in upfront costs. It’s no surprise that some people have decided to stay put rather than take on a higher upfront expense.”
Stinton also called for a wider review of property taxation.
He added: “Buyers need support, and a thorough review of the way property is taxed would be a good place to start.
“Any review should look at how we make moving home more affordable without creating higher costs elsewhere.
“A healthy housing market depends on people being able to move when they need to, whether that’s for work, a growing family or the next stage of life.”
