Property transactions jumped in March but have ended the financial year down on 2018 – with the Government losing out to the tune of nearly £1bn in Stamp Duty receipts.
HMRC property transaction data show the number of sales were up 0.4% annually in March on a non-adjusted basis to 96,300.
This was up 17% on a monthly basis.
On a seasonally adjusted basis, transactions increased by 1.4% between February and March, and were 6.8% higher annually at 101,830.
Commenting on the data, Neil Knight, business development director of Spicerhaart Part Exchange & Assisted Move, said: “For the past few years, March has seen a rise on January and February, so that is not a huge surprise, but it is positive to see it has risen quite significantly and is up on last year, which could indicate that the market is starting to recover slightly.”
However, analysis by accountancy firm Blick Rothenberg found transactions are actually down 1.5% or by 17,680 over the whole 2018/2019 financial year.
The firm warns this has also impacted the taxman’s Stamp Duty receipts, which are down £968m between April 2018 and March 2019.
Paul Haywood-Schiefer, personal tax manager at Blick Rothenberg, said: “It’s not surprising to see a downturn in the figures for both property transactions and Stamp Duty receipts over the past year.
“Buying a new property is a big decision and people tend to put off making such judgements when there is uncertainty about the future.
“The past year or more has been dominated by Brexit and this is clearly something that is affecting the market and this downturn has cost the Government nearly £1bn in lost revenue.”
George Bull, of accountancy firm RSM, added that the drop in Stamp Duty receipts could also be due to seasonal fluctuations in the property market and devolution of payments in Wales and Scotland – which are now not included in HMRC figures – as well as the introduction of first-time buyers’ relief which started in November 2017.
Comments (5)
Goose that laid golden eggs strangled by a greedy Chancellor, now editor of the Evening Standard.
Ah, the laws of unintended consequences make their inevitable appearance. To this shambles of an apology of a government – serves you right, you incompetent shower.
Probably artificially boosted due to Landlords selling. It was a delicate balance which need to be re-established. I suspect it wont be in the favour of new buyers though, and renters are likely to be paying more due to lack of availability.
Cut stamp duty over £925,000. This will be the shot into the arm the market needs. AND increase revenue for HMRC because of increased transactions.
Everyone knows that INCREASING taxes actually DECREASES tax revenue. Look back to the 1970’s.
I believe the experts may be overthinking the problem. Brexit , devolved payments, seasonal fluctuations. No fellas. Its just Stamp duty is too high.