The first figures from HM Revenue & Customs (HMRC) following the 1st April Stamp Duty surcharge for buy-to-let landlords and second homebuyers have been released.
First Figures Following Stamp Duty Surcharge Released
The provisional non-seasonally adjusted residential property transaction count for the second quarter (Q2) of the year was 208,000 liable and 63,400 non-liable sales, up by just 1% on the previous quarter and 10% higher than Q2 2015.
The number of property sales worth less than £250,000 was 6% higher in Q2 than the previous quarter, and 8% higher than in the same period last year.
The amount of transactions worth between £250,000-£500,000 in Q2 was 2% lower than Q1, but 12% higher than in Q2 2015.
HMRC’s data also shows that there were 9% fewer transactions worth over £500,000 in Q2 than the previous quarter, but 18% more than in the same quarter last year.
The estimated Stamp Duty yield for Q2 2016 was £1,977m from residential transactions and £724m from non-residential transactions.
This is 13% higher than the previous quarter, and 28% higher than Q2 2015.
HMRC notes that this is the first quarter to include the yield from those paying the higher rate of Stamp Duty on additional properties.
The Managing Director of estate agent Stirling Ackroyd, Andrew Bridges, comments: “Just a couple of months down the line from April’s Stamp Duty surcharge and the first results are in. The volume of properties sold keeps growing, and it’s at the lower end of the market where momentum is at its highest. It may be too early to call, but it seems the Government’s changes aren’t off-putting buyers from snapping up those additional properties.
“But raising Stamp Duty is a risky business. Buyers may have been able to grab second properties amid Brexit and economic uncertainty, with sellers having to settle for lower prices. However, at the top end of the market, buyers are looking scared and many are reluctant to shoulder the extra cost. It seems buy-to-let investors are still primarily competing with first time buyers for lower value properties. As we enter a post-Brexit property market, the Government may have to look again at the surcharge and assess whether it is helping or hindering the market.”
Has the additional Stamp Duty charge put you off investing further into the property market?