Total Stamp Duty Land Tax (SDLT) transactions in Q2 2023 (April to June) were 3% lower than in the previous quarter, according to the latest figures published by HMRC today.
The data also revealed that residential property transactions in Q2 2023 were also 3% lower than in the previous quarter, while non-residential property transactions were 2% higher.
Total SDLT receipts in Q2 2023 were found to be 2% higher than in the previous quarter, and 33% lower than Q2 2022.
In particular, residential property receipts were 1% higher than in the previous quarter, driven by a combination of lower transaction volumes, the increase in the nil rate threshold to £250,000 and increase in generosity of First-Time Buyers’ Relief from September 2022.
Karen Noye, mortgage expert at Quilter, said: “The Q2 2023 stamp duty statistics reveal a mixed bag for the UK’s property market.
“On one hand, residential property receipts rose 1% compared to the previous quarter, indicating a slow but steady recovery.
“However, the 32% year-on-year reduction compared to Q2 2022 demonstrates a significant slump, largely driven by a combination of fewer transactions, an increased nil rate threshold to £250,000, and a more generous First Time Buyers’ Relief initiated in September 2022.”
She continued: “These developments could prove troublesome for the Government, considering the potential impact on its stamp duty revenue.
“Moreover, a year-on-year dip in residential transaction data for June underscores the challenges facing the market, despite a 6% month-on-month uptick from May.
“These trends reflect the increasing affordability crisis in the property market that’s making home ownership an elusive dream for many.”
She added: “Regardless for first-time buyers, the property market continues to pose significant affordability challenges.
“Despite some relief provided by the increase in the nil rate threshold and more generous First Time Buyers’ Relief, the significant decrease in transactions and rising prices continues to show homeownership out of reach for many.”
