The volume in sales for properties over £1.5m looks set to fall for the first time in two years because of Stamp Duty Land Tax reforms.

Jackson-Stops & Staff say sales have been hit, bringing to an abrupt end, and threatening to reverse, the 36% growth year on year between 2012 and 2014.

Nick Leeming, chairman of Jackson-Stops & Staff, with 44 offices nationwide, said: “The wider UK residential property markets are reasonably buoyant now.

“However, the revision to Stamp Duty rates late last year has contributed to the widespread stagnation of the higher valued markets in 2015, both in London and the country, where many properties are finding it difficult to attract buyers.

“Sale volumes have plateaued across the country in response to high transaction costs, reflecting the fact that the UK has one of the highest taxed property sectors in the world.”

Under the changes, the value portion between £925,001 and £1.5m has resulted in an additional 10% bill, and anything above £1.5m has an added 12% charge.

Leeming said: “We have an ageing house owner population with too few younger entrants on to the property ladder.

“Mortgage funding is difficult to raise for people in their forties, even if they have been previous house owners, irrespective of their credit history.

“We need to encourage trading down so that larger houses are released to families needing more space.”

Alastair Hancock, director at Jackson-Stops & Staff in Sevenoaks, Kent, said: “Over a third of our available stock is priced in excess of £1.5m and this is no wonder given what little incentive there is for buyers at the mid- to high-end of the market currently.

“Since the Stamp Duty hike last December, we have seen a significant decline in volume of sales at this level.”