Figures released by HM Revenue & Customs (HMRC) have revealed that there has been a 1% rise in stamp duty land tax (SDLT), for transactions that completed in the 2019/2020 financial year.
Residential SDLT was said to have brought in £8,420m, even though the was a fall in transaction numbers, based on the same period last year.
Nick Leeming, Chairman of Jackson-Stops, commented:
“Statistics released from the HMRC show receipts from duty charged on residential transactions increased by just 1% in the year to April 2020, while transactions fell by 1%. Next year’s transaction figures however are likely to show a very different picture. Currently, hundreds of thousands of buyers and sellers are rushing to beat the impending 31 March stamp duty holiday deadline.
“There’s no denying the stamp duty holiday has had its desired effect on the market – on the ground, we’ve seen a notable uptick in activity across every branch, with sales agreed last month amongst the highest on record across the Jackson-Stops network. The knock-on effect an active property market has on the wider economy is hugely significant, particularly at a time when businesses need people to spend. Yet, with latest data from Zoopla showing that 140,000 more buyers are presently waiting to complete their property transactions compared to this time last year, this stampede of activity is now resulting in delays from mortgage advisors, with lenders and conveyancers coming under immense pressure.
“With a no-deal Brexit on the cards and both the stamp duty holiday and the current Help to Buy scheme soon coming to a close, there needs to be urgent measures put in place to prevent another cliff edge. Further support is needed from Government to avoid a chaotic and abrupt halt in activity at the beginning of next year and keep the market moving at a time when the economy needs it the most.”
